We remain relatively cautious towards Hungary's BUX equity index,nwith it having recently failed to break through the key supportturned-nresistance level at 20,000. Owing to the concentrated nature ofnthe index, with four firms comprising a weighting in excess of 90%n(OTP Bank -31.2%, MOL -31.3%, Gedeon Richter -19.4% andnMagyar Telekom -10.1%), the index is prone to security-specificnmovements. Furthermore, the business models of these four compacompaniesnare relatively detached from Hungary's business cycle, reducingnthe potential upside from the improving macroeconomic outlook.nThe risk of another government-mandated 10% cut to energy prices,nahead of next April's general election, is high and would impact onnMOL's revenue stream, with negative effects for the share price.
展开▼
