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Foreign investors' brokers experience collapse in June's activity

Raiffeisen Capital&Investments, ING Bank, and Unicredit CA IB Securities, top brokerage companies on the local market in terms of foreign investors, plummeted up to ten places in the local ranking, due to a lack of foreigners on the Romanian capital market, Business Standard writes.

Foreigners are reluctant to make investments in local shares, due to the international financial turmoil. The sharpest drop was registered by CA IB Securities, which ranked 16th in June, from 6th in May. ING Bank, May's top broker, currently ranks 10th, with brokered deals five times lower month-on-month. Intercapital Invest made it to the top of last month's ranking, having brokered several deals for Policolor paint producer shares. KBC Securities has managed to maintain its second place since last month. 'The main cause for these changes in the ranking of brokers is the lack of foreign investors, who are increasingly less active, both in Romania and on other capital markets,' according to ING Bank Romania's brokerage division Manager, Florin Ilie. Investors are currently holding on to their cash or investing in other instruments, he said. 'Fixed-income yields are become increasingly attractive, because of higher interest rates. As interest rises, stock markets decline. Europe has an inflationary environment, and everyone is expecting higher interest rates,' Ilie added. 'The local clients are leading the market. We will see such variations also in the coming period, because, on a low liquidity, any important transaction counts a great deal and can change the hierarchy. This is normal on a small market', concluded the head of the brokerage division of ING Bank Romania. Versus June 2007, the trading volumes of the brokerage companies reduced to half. Thus, as compared to H1 2007, when the top 10 brokerage firms unfolded deals of over 11bn lei (some 3.31bn euro), in H1 the traded sums stood at some 5,7bn lei (1.58bn euro). Sursa: http://www.rompress.ro

Tags: foreign brokerage ing euro

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