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Tuesday, 26 May, 1998, 17:42 GMT 18:42 UK
Markets still worried over Hungary's new government

The Hungarian Stock Exchange has shown a slight recovery after heavy falls on Monday.

The slump followed general elections results on Sunday, when the main centre-right parties failed to win an overall majority in the general election last weekend.

Correspondent say the party which did best in the elections, the Civic Party, will need the support of the right-wing Smallholders' Party to be able to govern.

The Civic Party leader, Viktor Orban, has sought to reassure the markets by promising to appoint a financial expert to the post of Finance Minister.

He also said that the new government would not seek to change the governor of the country's central bank.

Mr Orban says he hopes to form a new government within three weeks.

From the newsroom of the BBC World Service

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