The Budapest Stock Exchange Share Index, better known by its ticker symbol BUX, is the official benchmark of shares listed on the Budapest Stock Exchange (BSE) and consists of up to 25 of Hungary's blue-chip stocks. The BUX has been hammered by the aftermath of the 2008 credit crisis and subsequent financial meltdown, shedding two-thirds of its total value in less than two years.
The BUX index is calculated in Hungarian forints and aims to be an indicator of domestic Hungarian stock prices by sampling between 12 and 25 stocks listed on the BSE, its owner, that satisfy five market liquidity criteria. It's small-cap/mid-cap counterpart, the Budapest Stock Exchange Mid- and Small Cap Share Index (BUMIX), has lower market capitalization qualification and fewer liquidity requirements to meet. The structure of the BUX is revuewed twice annually in March and September with new baskets introduced the following month. Its base value of 1,000 points was set in January 1991 and is recalculated every five seconds.
As of June 2008 the BUX's value was dominated by Hungary's two leading blue-chip stocks on the BSE: MOL with 31.68% and OTP Bank with 28.98%. A decline in both stocks in September 2008 saw the BUX fall to under 20,000 from a peak of above 30,000 in 2007. Both stocks, which comprise over 60% of the BUX's value, were the subject of speculative selling on the BSE following the collpase of Lehman Brothers earlier that month.
The rout has since continued for the BUX and on February 20, 2009 it fell below the historic 10,000 mark that was first set in February 2004. The BUX dropped 6.43% on Feb. 20 to hit 9.965.99, representing a loss of more than 50% since September 2008 and of more than two thirds since July 23, 2007, when it the BUX closed at its all-time high of 30,118.10.
- INDICES. Budapest Stock Exchange.
- Global bear market mauls BUX; Index has lowest close since June '06. MTI-ECONEWS.
- BUX dips below 10,000 for first time in five years. Budapest Business Journal.