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Morgan Stanley shows trust in direction Romanian economy is moving

Investment bank Morgan Stanley has an exposure of several hundreds of millions of euros in Romania and the local market is very interesting, Bogdan Ciobotaru, Morgan Stanley vice-president, was quoted as saying by Business Standard daily.

'We are very encouraged by the stage Romanian economy is in, and where the market is going at the moment', said Ciobotaru in the interview published by this Bucharest daily. 'I can say that our management is extremely enthusiastic about the current macro context in Romania, reason why we decided to invest important amounts on the Romanian capital market and in non-liquid assets, too, as for instance in non-listed companies, as well as in some other instruments', underlined Morgan Stanley vice-president. At the question if the Stock Exchange continues to represent a good investment, given the unfavorable market context at present, Ciobotaru thinks that, 'even though Romania had to suffer a lot at the regional level, due to speculative exuberance lately, partially motivated by dissimilar conditions in Romania compared to the countries in the region, but also due to the high convergence potential, there is a certain level from which the Stock Exchange and investments on the capital market become very attractive and we are not far from that moment'. Referring to the likelihood that, in Erste Bank footsteps, other foreign companies could be listed on Bucharest Stock Exchange (BVB), Morgan Stanley vice-president said that, in fact, when confronted with the choice to list its shares on a foreign exchange an issuer will choose, of course, the most advantageous offer. Because 'in Bucharest costs are pretty high, reporting criteria are tougher and the liquidity is extremely reduced', Ciobotaru does not think that, 'on the short term, there will be a lot of foreign companies which would opt to list their shares in Bucharest'. Otherwise, exactly due to BVB low liquidity, 'any foreign capital withdrawal formerly invested in Romanian stock, even if in absolute terms is not an important amount, in relative terms it can have a significant impact upon the Stock Exchange and upon the share prices in general'. Ciobotaru pointed out that there are four-five big investors on BVB, with an exposure of approx. one billion dollars in Romanian shares and, in case they decide to reduce their exposure with just 10 percent that would mean some 100 million dollars withdrawn from this market. That might have a significant impact upon the domestic market, under conditions in which daily liquidity on BVB is, in general, below 20 million dollars. Sursa: http://www.rompress.ro

Tags: stock exchange ciobotaru market stanley romanian morgan bvb

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