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Capital market visibly affected by absence of institutional investors

The Romanian capital market, which registered a strong setback in the last year, is affected by the absence of institutional investors, Daniela Stefu, executive manager with OTP Asset Management Romania, told the Bursa daily.

Stefu underscored that nonattendance sales are missing from the Romanian capital market and government stock is just now being listed, with a delay of one decade.

Along with the 'extremely discreet presence of strong local institutional investors' such as insurers or pension funds, the speculations performed by quite a number of investors also contributed to the decline of the local Stock Exchange, reveals a repost by SSIF Intercapital Invest.

'Apparently the market is very calm, but important stakes have piled up for certain issuers. I think we will soon see a comeback of institutional investors, given the fact that rating and analysis agencies convey a positive, trust-building message about Romania,' Adrian Simionescu, director of brokerage company Vienna Investment Trust, told daily Ziarul Financiar.

In turn, brokerage companies' analysts say the falling share prices along with the good outcomes of the same issuers will determine investment funds in Europe and Asia to overcome their risk-aversion and start buying assets.

'All I can notice is that foreign investors, who actually make the trend of our Stock Exchange, are in to buy and accumulate shares. The previous week we had several meetings with institutional investors - investment funds based in London, Prague, Hong Kong or Singapore - who are seeking to buy large stakes in Romanian issuers. The trustees of these funds say that Romanian shares are highly attractive at these prices,' Petru Prunea, president of brokerage company Broker Cluj-Napoca (center-west) told regional daily Informatia de Cluj.

Referring to solutions for the development of the local capital market, Daniela Stefu said that regulated exchanges should slash commissions in the first place, provide higher flexibility for the listing procedure and facilitate 'market-maker' activities.

The OTP Asset Management Romania official added that although the Bucharest Stock Exchange has quite a number of issuers with strong growth potential, chances are that funds also include in their portfolios stock listed on other regulated markets.

Sursa: http://www.rompress.ro

Tags: investors funds stock capital institutional market otp

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