Hungarian stocks surge as Peter Magyar topples Viktor Orban from power
Hungarian-listed stocks hit records high in early trading after Prime Minister Viktor Orban was toppled from 16 years in power following a sweeping election defeat.
Budapest’s BUX jumped 3.3 per cent upon market open, before settling at a 2.7 per cent gain, trading at 136,481 points, a fresh record high for the index.
Gains were primarily driven by three stocks, including financial service provider OTP Bank, which jumped three per cent, and is up 80.7 per cent over the past year.
Oil company MOL rose 1.2 per cent, while pharmaceutical company Gedeon Richter gained 1.4 per cent.
Elsewhere, the nation’s currency also surged to a four year high, appreciating 2.4 per cent to 365.6 euro as of 9am in Budapest, the strongest level since 2022, while jumping 1.7 per cent against the dollar.
Hungarian dollar bonds also became the best performers across emerging markets.
Bets pay off
While the outcome represents a “new beginning” for Hungarian assets, the results also allow investors and managers who positioned their portfolios on the expectation of a Tisza party victory to breathe a sigh of relief.
Danske Bank AS confirmed it had been buying for the last three months anticipating voters would oust Orban in favour of Tisza party leader Peter Magyar.
Other industry figures noted that Magyar’s super majority, with the party winning two-thirds parliamentary majority, would enable the market to extend its rally.
Matthias Siller, co-portfolio manager of Barings emerging EMEA opportunities investment trust, said: “The election win for Peter Magyar’s TISZA party will represent a structural break for Hungary, with meaningful macro, regional and equity‑market implications.”
“A constitutional super‑majority would allow Tisza to cleanly dismantle the current governance framework without prolonged parliamentary obstruction… compress Hungary’s structural risk premium, unlock growth capital, and reshape regional dynamics.”
While some stocks have surged, companies with close links to Orban have reported declines over the past month, including asset management company Opus Global and IT company 4iG, which dropped 13.6 per cent and 17.9 per cent respectively.
Securing EU funding
Magyar’s ascent to power is also expected to help unlock access to billions of euros in EU funding.
Funding was partially frozen by Brussels due to rule-of-law breaches by Orban’s administration, with roughly €20bn frozen by early 2026, with €3bn “lost for good”.
The lack of funding placed a significant financial strain on the country, including a recession during the 2023/24 tax and near-stagnation ever since.
Holger Schmieding, chief economist at Berenberg, said: “On one major count, a new Hungarian government could probably make a major positive difference for the Hungarian economy shortly.
“But with a government in Hungary that promises to play by EU rules again, the EU could soon start to disburse some of the €9.5bn in cohesion funds earmarked for Hungary that Brussels is currently holding back.
“How fast and to which extent a new government will change domestic policies remains to be seen. Still, the relegation of Orbán to the opposition benches will likely make Hungary a better place for domestic and foreign investment.”
Repairing EU ties
Tisza has vowed to take steps towards joining the euro area, reducing Hungary’s borrowing costs, which are currently among the highest in the EU, with the yield on a 10 year bond averaging around seven per cent over the last 12 months.
In his victory speech on Sunday night, Magyar said: “Hungarians said yes to Europe again today. Our place has been in Europe for 1,000 years and will remain so.
“My first journey will be to Poland to restore 1,000-year-old friendship. My second will be to Vienna and third to Brussels to bring back EU funds that belong to Hungarians. Hungary will once again be a strong ally of Europe and Nato.”
Analysts expect more out performance to come in Hungarian stocks following the victory as long as the government succeeds in unlocking access to EU funds and maintains market confidence.