Investor Sentiment Reflects Cautious Optimism
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A long-term turnaround is taking shape at the German biotech company
European markets have reached key support levels thanks to the recent corrections. However, the downturn has not yet given way to a turnaround. This is confirmed by our screening list, which shows few or no promising opportunities. In such a market environment, momentum-based turnaround strategies are typically less effective, which is why, once again, only a few companies met our screening criteria. From the list, we highlighted the German life sciences and biotechnology company Sartorius AG, which develops and manufactures laboratory and biopharmaceutical production equipment, as well as related services. We see a long-term turnaround opportunity, so seeking long positions may be worth considering.
Hungarian Equities - Technical Analysis
The BUX index has begun to show signs of a correction, but there has not yet been any confirmation of a significant change in its structure. MOL’s share price has stabilized above the 5,000 forint level following the dividend payment; a break below this level could pave the way for a deeper correction. Richter broke through the 12,500 forint support level, further reinforcing the downtrend. Magyar Telekom’s share price continues to trade above the 2,500 forint level, though it is being squeezed into an increasingly narrow range below the downtrend line. Opus remains in a downtrend following the formation of a new swing low. Rába’s share price bounced off support around 3,125 forints and continues to maintain the trend-confirming pattern.
In our Institutional Investor Survey, we are providing a unique opportunity for our institutional clients to share and gain insights on market expectations and sentiment. Our focus is on Hungarian assets in the context of regional and global trends. Here, we highlight the most notable insights.
Investor sentiment toward Hungarian equities remains firmly positive, although the latest survey shows a modest reduction in conviction. The share of outright bullish responses fell from 8% to zero, while neutral views increased from 16% to 24%. The results suggest that investors continue to expect the BUX to perform well over the next three months but see less potential for a strong rally after the market’s previous gains.
The outlook for the broader CETOP Index has become more balanced. Slightly bullish responses increased from 40% to 47%, making this the largest category. The CEE region has been able to weather the risks posed by rising energy prices relatively steadily so far this year, supported primarily by domestic consumption and investments aided by EU funds. The CEE equity market remains significantly cheaper than Europe despite a stronger earnings outlook. Corporate profits are expected to grow by 30% this year, roughly twice the European rate, while margins are near record highs. This combination makes CEE one of the most attractive options for investors seeking inexpensive growth without direct exposure to the AI theme.
Investor expectations for the forint have become more cautious since the June survey. The largest share of respondents, 65%, now expect EUR/HUF to trade between 360 and 370 over the next three months, compared with only 24% in the previous survey. Investors continue to expect a broadly stable forint but see less scope for further appreciation from current levels.
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