Hungary’s central bank reportedly buys control of Budapest bourse

By bne IntelliNews November 23, 2015

Hungary’s central bank has bought a majority stake in the Budapest Stock Exchagne (BSE) in a HUF13.2bn (€42.5mn) deal, local media claimed on November 20.

The Magyar Nemzeti Bank (MNB) paid HUF3,550 per share, raising its stake to 75% from the 6.9% it held previously, unnamed sources told MTI. Both the MNB and the supposed sellers declined to comment. Austria's CEE Stock Exchange Group controls a 50.5% stake in BSE and Oesterreichische Kontrollbank AG holds 18.35%.

Last month, MNB Deputy Governor Laszlo Windisch said the central bank wanted to take control of BSE and list shares of state-owned companies on the bourse. Returning to state hands could be good news for the BSE, which has endured a tough few years. It's few new listings have proved far from successful, while it has seen a series of companies quit the exchange.

Activity has been steadily eroding. The average daily equity turnover on the bourse shrank 17.9% in 2014, to leave it at just HUF7.8bn. It is the lowest figure in the past nine years. Until now, the poor relationship between the government and the bourse virtually ruled out the floatation of state-owned companies, analysts argue.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

UniCredit sees modest growth and fiscal overshoot for Hungary in 2024

Hungary’s economic rebound will be modest this year, around 2%, and the return to potential growth is set to be postponed to 2025 with GDP expanding around 3.2%, according to UniCredit bank's ... more

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    6 days ago
  2. Saudi Arabia to scale back plans for Neom city
    9 days ago
  3. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    6 days ago
  4. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  5. Russia’s war economy boosted by rising oil prices
    3 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    20 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    24 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    29 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    22 days ago

Reports

Dismiss