Traders Line Up Wagers on Hungary’s Markets as Election Nears

With just days to go before Hungarians head to the polls, investors and strategists say there’s more room for markets to rally if polls are correct in showing that Prime Minister Viktor Orban’s 16-year-old experiment in “illiberal democracy” is coming to an end.

Citigroup Inc. has recommended buying Hungary’s domestic bonds and shorting the euro against the forint. Strategists at Societe Generale SA have said the currency, which was trading well above 380 per euro before the US-Iran ceasefire plan, may strengthen beyond 370 if Peter Magyar’s opposition Tisza party wins power as most opinion polls predict.