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Stock exchange trading in Proprietatea Fund starts today

Bucharest Stock Exchange trading in Proprietatea Fund (PF) stock starts on Tuesday, January 25, in what represents a landmark event on the local stock market in the recent years.

The recipients of PF shares awarded in compensation for the property lost during the communist regime, the speculators who bought Fund shares off the capital market and seek to mark fast returns of 100-200 pct, and all participants in the stock exchange as well have been looking forward to this event, pinning their hopes to its positive overall effect, five years after the Fund's becoming operational as a joint-stock company in December 2005.

The Fund holds stakes in 83 private and state-owned companies, and the sectors of electricity, oil and gas represent a major component of the portfolio. Representatives of the fund's manager Franklin Templeton estimate that the listing thereof would triple the stock exchange liquidity, enhancing Romania's attractiveness.

The face value of PF shares is RON 1 per share, and brokerage houses and analysts expect them to trade for a start around RON 0.5 - 0.8 per share. Off-market buyers of PF stock, who paid just around RON 0.2 - 0.3 per share, could thus make substantial profits.

The potential buyers are institutional investors that operate in the region (pension funds, mutual funds) and that guide themselves by the discount to the net assets, the dividend policy and the reputation of the Fund manager. The Fund's listing in London could also act as a catalyst for a price rise in the year ahead.

Until Oct. 2010, the net asset value per unit calculated by the Fund stood between RON 0.98 and RON 1.04. As of November, according to the new rules of calculation that do not take into consideration the discounts applied to the unlisted companies in the Fund's portfolio, the NAV per unit was RON 1.154 in November and RON 1.1124 in December.

Compared with the Financial Investment Companies (SIFs) whose average discount is currently 54 pct, PF should trade for a minimum price of 0.51 euros per share. Compared with other closed-end funds listed in the U.S., Proprietatea Fund should trade for RON 1.04 per share.

In order to fully collect their compensation from the Romanian state, the former property owners should sell their PF shares for the face value of RON 1 per share.

The Fund was set up in order to compensate former property owners abusively dispossessed by the former communist regime (1945-1989) and who can no longer have their property retuned in kind. The PF listing entered the final lap after Franklin Templeton took over as PF investment manager and sole trustee of the Fund on September 29, 2010, Agerpres informs.

Sursa: http://www.actmedia.eu

Tags: share proprietatea exchange stock

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