Wednesday, March 28, 2007

Romania:Political turmoil generates reserve amid Stock exchange investors

28 March 2007

Political incertitude and eventual Government's restructuring generate reserve among investors on Bucharest Stock Exchange (BVB), appreciate analysts on the capital market, ACT Media news agency reports.

The first trading session this week was remarked through a low liquidity, almost to this year minimum (8.09 million euros), at a volume of 16.8 million shares. All exchange indicators were affected by corrections, and the most drastic decline was suffered by Financial Investment Companies (SIF) shares, with average losses of 3.11 percent.

Capital market analysts say the drop in financial sector was due to sustained increases that appreciated BET - FI Index by 8.5 percent last week and to incertitude on the political scene, as well.Adrian Barbulescu, trader with Prime Transaction, says that a more accentuated withdrawal from the market of buyers especially in the second part of the session was remarked, coinciding with information from the political scene as regards an eventual restructuring of the Government.

Investors failed to reverse the trend until the end, so that the overall value of exchanges on all markets stood at just nine million euros.SIF shares trading amounted on Monday at more than 15 million lei (4.5 million euros), accounting for some 55 percent of the entire trading.
The most transacted title was SIF Oltenia (SIF 5), with a total of 5.25 million lei (1.5 million euros). The biggest decline was registered by SIF Moldova titles (SIF 2) and SIF Muntenia (SIF 4) that lost 3.87 percent each.In the banking sector, two titles (Romanian Bank for Development - Groupe Societe Generale and Transilvania Bank) saw a negative evolution. As such, BRD shares concluded at 21.8000 lei/title (1 euro = 3.3 lei), a reduction of 1.36 percent from the previous session.Reductions did not circumvent the oil sector either. Whereas the shares of the National Oil Company (SNP) Petrom remained at the same value as the one concluding last week, 0.5800 lei/title, Rompetrol Rafinare Constanta (RRC) shares dropped more than two percentage points.

Source: ACT Media News Agency

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