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BRD president shocks: BSE is on the edge of death

“Bucharest Stock Exchange (BSE) needs to reflect on what should be done, needs to look into the listing costs that are too high, into simplifying the bureaucratic procedures, in order to encourage the emergence of new issuers.”

Patrick Gelin, BRD – SocGen President, affirms that the market has fed itself with illusions, relying on local speculators, and when foreigners have left, the stock exchange declined, based on Friday mass media accounts. According to him, the Bucharest Stock Exchange (BVB) is on the edge of death as it has been feeding itself so far with illusions, and it relied on local clients consisting not only of professional investors but mainly speculators who were aiming only got fast gains and who expected the market grow every day, and this cannot work endlessly. “No financial market can be created thus. The market was actually formed by non-residents, who have left now and the growth is over, since the local speculators are not able to back it, thus, everybody withdraws. The market can live only having local professional investors – insurance companies, pension funds; it cannot rely on non-residents and less can it rely on retail clients. The institutional investors form the market, but it needs to be something where they can invest their money”, according to Patrick Gelin. He would not see who the stock exchange would recover considering that the non-residents specialists in financial investments do not come in the market. “Bucharest Stock Exchange needs to reflect on what should be done, needs to look into the listing costs that are too high, into simplifying the bureaucratic procedures, in order to encourage the emergence of new issuers”. He provides the example of the internalizing process in case of BRD Securities, within the bank, which has been prolonging for months. As for the turbulences in the external markets, which have triggered the withdrawal of stakeholders from BVB, Gelin has questions related to the outcomes for Romania, “which are impossible to anticipate”. It has to be seen what repercussions will exist, but the main questions is whether we witness a “slowdown in economy or a strong decrease”. On the other hand, the banker believes that a stabilization of the economic dynamics should be expected after 4-5 years of exceptional growth. Sursa: http://www.nineoclock.ro

Tags: market needs exchange brd stock bvb

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