Amid contrasting sentiments on international stock exchanges, Hungary's BUX index achieved a milestone on Monday, ascending by more than 1%, setting a new historic closing high.

Key players OTP Bank and MOL joined the rally, with OTP also reaching record levels, as reported by Portfolio.hu.

The BUX index concluded the trading day with a 1.1% increase over the previous closing value, demonstrating a distinct upward trend as it stayed above the 20-day, 50-day, and 200-day moving averages.

This sustained upward trajectory highlights the resilience of Hungary's stock market amidst global fluctuations.

Detailed analysis by Növekedés revealed that the Budapest Stock Exchange’s BUX index climbed by 866.24 points or 1.06%, closing at 82,628.01 points.

The stock market's total turnover reached 22.3 billion forints, with major stocks, apart from Magyar Telekom, rising compared to the previous day.

MOL saw its share price rise by 48 forints or 1.74%, reaching 2,808 forints on a trade volume of 1.2 billion forints.

OTP bank shares climbed by 360 forints, an increase of 1.59%, closing at 22,960 forints with a substantial trading volume of 17.8 billion forints.

In contrast, Magyar Telekom’s shares fell by 20 forints or 1.5% to 1,316 forints, with a trade volume of 785.3 million forints.

Concurrently, the Hungarian forint exhibited mixed performance against major currencies in the interbank currency market.

By Monday evening, the euro was valued at 412.96 forints, slightly down from 413.11 forints in the morning.

Conversely, the US dollar appreciated, trading at 404.32 forints, up from 404.15 forints, while the Swiss franc decreased to 440.15 forints from 440.74 forints.

These movements occur in a wider financial and economic context in Hungary, where government fiscal policy is under scrutiny.

According to the Ministry of National Economy, the central budgetary subsystem reported a deficit of 4,095.8 billion forints by the end of the year.

While improved against revised targets, this still marks a significant overspend compared to original budget submissions.

Amidst fiscal adjustments, Prime Minister Viktor Orbán emphasized the importance of fiscal restraint, underscoring that the budget deficit must not spiral.

This message resonates amidst limited access to EU funds, which has pressured fiscal indicators.

The market's strong performance on days like Monday and fiscal challenges highlight the dichotomy in Hungary's economic landscape.

The OTP Bank and various other investments continue to thrive, reflecting investor confidence in certain sectors, while fiscal policies are being adjusted to meet macroeconomic realities.

In educational and healthcare sectors, the government has significantly increased expenditure, meeting demands for public sector wage increases, which were a substantial portion of the budget.

This economic context and stock market resilience illustrate the multifaceted dynamics of Hungary's economic environment amid fluctuating global and regional market conditions.