1Semana·

Hungarian shares next week ...

My assessment as a layman with close personal ties to Hungary:

Gedeon Richter's current share price reflects the optimism that Orbán will be voted out of office on Sunday.

The shares will probably fall on Monday in both cases:

If Péter Magyar wins, Orbán will cling on to power. Either he will be elected president before the new parliament is constituted or there will be violent uprisings à la Bolsonaro and a storming of the Capitol.

If Orbán wins, the optimism of recent weeks will be corrected in share prices.


It should not be underestimated how strong Orbán's support is among the uneducated population in the countryside, how strong the Russian influence on the election campaign is and how unfair the electoral system and constituencies have become under Orbán (in the last election, Fidesz got a two-thirds majority in parliament with half the vote).


In Hungary, every few years there is great optimism that Orbán will be overcome after all, and then often nothing comes of it.


I will gladly return to Richter as soon as the situation becomes clearer and we can build on certainties.


[PS: my sale was unfortunately with a large spread; the ask price was already at €34.40]

10.04
RIC
Vendido x5 em € 33,78
€ 168,90
20,38%
3
4 Comentários

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As I also visit Hungary every month, I can say the following from my compatriots' experience:
The policies of Viktor Orbán and his Fidesz party are often the subject of controversy. However, advocates and supporters see specific advantages for the country in his style of government.
Orbán has governed with a two-thirds majority since 2010.
Orbán's "advantage" still lies in his ability to unite the conservative camp and set a clear ideological direction, while critics tend to see these structures as undermining democracy.
Critics and economists see structural burdens that could weaken Hungary in the long term.
Dependence on low-wage industry: The model of establishing Hungary as an extended workbench for German car manufacturers and Asian battery factories is reaching its limits. There is a lack of investment in education and research, which is hampering the country's innovative strength in the long term.
Brain drain: Young, well-educated Hungarians are leaving the country due to the political mood and the poor state of the education and healthcare system.
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Uneducated rural population here:
Please bear in mind that many of his voters are well aware of corruption and therefore consider him the lesser of two evils. Many are very comfortable with this.
In contrast to other large HU companies such as OTP and MOL, orbán has less influence over Richter, or rather he has not placed his people in the upper echelons. This means that Richter is not a servant of his politics. Movements in the price are then due to general sentiment, but in fact Richter is more independent of political events.
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Delusion 11/10

Looks like you were completely wrong. That's what happens when you only watch ÖRR
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