July 17, 2013 / 11:13 AM / 4 years ago

OTP shares fall on new Hungarian forex loan plans

BUDAPEST, July 17 (Reuters) - Shares in Hungary’s OTP Bank fell over 3 percent on Wednesday, pressured by news that the government is exploring potential changes to foreign currency loan contracts to help indebted households.

At 1103 GMT, OTP shares were down 3.2 percent at 4,870 forints ($21.89)on the Budapest Stock Exchange, rebounding from falls of as much as 3.7 percent and underperforming the blue chip index, which fell 1.4 percent.

“It is clearly driven by the forex loans story,” a Budapest-based equity trader said.

“There was just a modest reaction in the morning but we see a continuous selling pressure on the stock and several stops were also knocked out,” he added.

Jozsef Miro, an analyst at Erste Bank added:

“Sentiment is negative on stock markets today but the bigger driver was the comments by (deputy prime minister) Tibor Navracsics (on forex loans). The market does not know what exactly will happen. These comments boost uncertainty.” ($1 = 222.5157 Hungarian forints) (Reporting by Gergely Szakacs and Krisztina Than)

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