Gedeon Richter Nyrt., Hungary’s biggest drugmaker, plunged the most in 2 1/2 years as MSCI Inc. (MSCI:US) said it will drop the company from its Hungarian index at the end of this month following a semi-annual review of the gauge’s members.
The shares slumped 7.2 percent to 37,685 forint by 10:19 a.m. in Budapest, the biggest drop since May 2010. The benchmark BUX stock index in which Richter has a 19 percent weighting slid 1.1 percent.
Richter was the only Hungarian stock to be deleted from the MSCI Hungary Index, effective close of trading on Nov. 30, according to a statement on MSCI’s website. Investment funds which follow MSCI indexes will probably sell Richter shares, according to Akos Kuti, a Budapest-based analyst at broker Equilor Befektetesi Zrt.
“The exclusion will lead to selling pressure on the stock over the next few days until the exclusion date,” Carsten Hesse, a London-based analyst at Wood & Co., wrote in a research report today. Hesse said Richter’s deletion was a “major surprise.”
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