Hungarian Stocks & Currency See Week-Long Rally On Signs Of Gov’t Compromise In Dispute With EU
- 20 Jan 2012 8:00 AM
Indications from Prime Minister Viktor Orbán that he is willing to amend some laws in order to resolve disputes with the European Commission have fuelled a rally in the Hungarian currency, stocks and bonds this week. The forint strengthened to its strongest level against the euro this year yesterday at Ft 302, with the Swiss franc quoted at Ft 250.
The BUX index ended the day 2% higher at 18,500, up 6.6% since Monday.
In particular, OTP shares soared 7% on Thursday alone to Ft 3,749, helped by strong demand for bank stocks globally.
Bond yields fell sharply. The average yield for the 12-month treasury bill fell to 8.19% at Thursday’s auction from 9.96% two weeks ago.
In London, Hungarian credit default swap prices plummeted to their lowest level this year, from 667 points on Wednesday to 620 yesterday as investors are starting to price in an agreement with the IMF."
Source: Hungary Around the Clock
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