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Analysts: Local stock exchange has potential for revival

The Romanian Stock Exchange shows signs of a revival and there will be clear elements of the resumption of an upward trend by the end of the first half-year, say the financial analysts from KD Capital Management, part of Slovenian financial group KD.

'In our opinion, based on the analysis of the current macroeconomic circumstances, the Romanian capital market has the potential for a revival in the upcoming period, so as to correctly reflect the overall evolution of the economy. We consider that, under such circumstances, the evolution recorded on the Romanian stock exchange market has been an artificial one as it rather mirrored the crises in the foreign markets triggered by the U.S. subprime crisis', the KD officials said at a meeting with journalists focusing on the domestic stock exchange, on Thursday. The stepped up pace of the rise in exports up to 14.4 percent in the first quarter, for the first time above the imports' increase pace, coupled with the economic growth and the prediction of an exceptional farming year in 2008 point to a positive trend of the national economy, running counter the evolution seen by the stock exchange market since the beginning of the year and up until now, KD Capital Management president Silviu Enache said Furthermore, since May will bring the first collections for the private pension funds, that have the potential of creating more liquidity on the Bucharest Stock Exchange, the KD experts believe the required circumstances are in place for a relaunch of the Romanian capital market's activity. The Bucharest and Sofia Stock Exchanges, on the background of the world financial crisis, recorded much more severe corrections than the other European stock exchanges, amid higher associated risks. The Bucharest Stock Exchange has lately showed signs of a revival and of a resumption of an upward trend, while the Sofia Stock Exchange has 'stabilised the drop'. However, the KD analysts argue the Romanian and Bulgarian stock exchanges will be the first to set on a solid positive trend. In this April, the Bucharest Stock Exchange indices, that reflect the evolution of the quotations, posted mixed evolution, with the BET index rising by 1.45 percent, while the BET-FI index of the Financial Investment Companies (SIF) dropped 0.42 percent. The trading volumes dropped 27.55 percent from Q1 of 2008 and by 51.6 percent from the 2007 average, amounting to 26.72 million lei per session. Sursa: http://www.rompress.ro

Tags: stock first evolution percent analysts romanian revival exchange potential sif bet

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