New Fiscal Plans In Hungary Hit OTP Shares Hard
- 24 Oct 2012 9:00 AM
OTP shares plunged as much as 9% at one point yesterday after Economy Minister Gyorgy Matolcsy announced that the bank tax would remain in full effect next year, and that the tax on financial transactions would be doubled to 0.2%.
Shares fell from the Ft 4,442 opening price towards Ft 4,000 before buyers stepped in and pulled the share price up to Ft 4,230, a 3.7% decline on the day, on exceptionally large volume of Ft 26.7 billion.
Analyst Gabor Gabler of Equilor brokers said the market's reaction was excessive, as the impact of the news on OTP's fair value is near Ft 100 per share.
The cabinet decision not to reduce the bank tax next year means that OTP will pay Ft 34 billion rather than Ft 17 billion of the special tax.
The increase in the transaction tax will cut revenues by Ft 10 billion, Gabler added.
Source: Hungary Around the Clock
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