Budapest bourse announces ambitious five-year plan

The Budapest Stock Exchange, which was recently bought by the central bank, has presented an ambitious five-year development plan that seeks to invigorate activity on the flagging bourse by attracting more issuers and investors. Details of the new strategy were presented by newly-appointed chairman Marton Nagy at a news conference today. The main goals will be to increase the number of large liquid shares to at least five from a current three to four and attract at least five share or corporate bond listings a year. The new management will also aim to boost the stock market capitalisation to 30% of the GDP from some 13% currently. That would contribute 0.2pps-0.3pps to real GDP growth in the long term, Nagy said. The BSE is currently holding talks with the economy ministry about a package of regulatory incentives for both issuers and investors.

The National Bank of Hungary (NBH) bought a 68.8% stake in BSE from Austrian owners for HUF13.2bn in November. The deal saw NBH’s holding increased to over 75%. The NBH hopes the acquisition will help invigorate activity on the bourse, and pave the way for IPOs of state-owned companies.

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