Investing in Hungary

Hungary is an EU member country with a medium-sized, liberal economy that is rapidly developing. It has the 5^th largest economy in Central and Eastern Europe, with major exports in machinery, chemicals, textiles, and agricultural products.

Hungary’s Main Industries

Hungary is economically known for its strength in:

• Agriculture Sector
  • Wheat
  • Corn
  • Sunflower
  • Potato
  • Sugar beet
  • Canola
  • Apple
  • Pear
  • Grape
  • Wine
  • Livestock
  • Industrial and Manufacturing Sector
    • Automobile Production
      • Engine manufacturing and production
      • Vehicle Assembly
• Heavy Industry
  • Mining and Metallurgy
    • Metalworking and processing
    • Steel Production
    • Metallurgy
    • Machine Production
      • Machine tools
      • Transport Equipment
      • Electrical Appliances

• Energy Production
• Mechanical Engineering
• Chemicals
• Food Processing
• Services
  • Tourism

Hungary’s Main Stock Exchange

The main stock exchanges in Hungary is:

1. 1. Budapest Stock Exchange
   1. Previously The Hungarian Stock Exchange (1864)
   2. Operates as a subsidiary of the CEESEG AG holding company, which owns around 70% of the BSE
   3. Over 40 domestic and international brokers participate in trading on the BSE
   4. Products traded include

i. Equities

ii. ETFs

iii. Government and corporate debt

iv. MBS

v. Futures and options

vi. Grain commodities

1. Important indices

i. BUX

ii. MSCI Hungary Index

Glimpse into Hungary’s Equity Market

Hungary’s economy was severely impacted by the recent recession, owing partly to having one of the largest public deficits in the EU region. However, it has recovered quite well, and its equities have rebounded solidly over the past year.

The MSCI Hungary Index stock index rose 24.36% over the last year, with a year-to-date of 16.59% return.

Stock Index Performance: BUX

Hungary’s 10 Most Profitable Companies in 2010

Ways to Invest in Hungary

There are a couple of different ways to invest in Hungarian companies:

• Through a regional Hungarian Bank or a foreign bank/investment company located in Greece
  • Erste Bank Hungary
  • Budapest Hitel
  • OTP Bank
  • Deutsche Bank
  • BNP Paribas Hungaria Bank
  • Raiffeisen Bank
  • Investors can purchase equities through a regional bank
  • Hungarian ETFs
    • ESR:NYSEArca – tracks the MSCI Emerging Markets Eastern European Index Fund
    • GUR – aims to replicate the SPDR S&P Emerging Europe index, and has over 5% exposure to Hungary
    • Through some international online brokers:
      • MB Trading
      • Interactive Brokers
      • TD Ameritrade
      • E-Trade
      • Questrade
      • optionsXpress
      • optionshouse
      • tradeMONSTER
      • Charles Schwab