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Brokers, investors speak about Bucharest Stock Exchange developments

The decision to suspend trading on Wednesday on the Bucharest Stock Exchange (BVB) took the capital market players by surprise, with both the fund managers and the investors saying, however, that the move made by the BVB managers was a normal one, as it offered the investors respite to ponder over, thus halting selling for the moment.

On the other hand, the analysts and investors say there is need for firm measures to be taken by the authorities - the Government and the National Bank of Romania (BNR) - in order to restore the investors' confidence in the financial system.

STK Financial company managing director Nicolae Pascu said 'the suspension of trading is welcome, since the investors were stopped from selling at a loss'.

The latest developments on the BVB and the global markets have managed to also frighten the investors who have kept being optimistic so far.

'When I came to the office early in the morning and saw the evolution of the U.S. stock exchanges, I wished I had no stock in the portfolio whatsoever. Nevertheless, I couldn't have expected such a move by the Stock Exchange Board. After what happened today, I have begun to see the future in darker colours', Ziarul financiar daily quotes management company Aviva Investors executive director Eugen Voicu as saying.

Brokers are waiting for firm measures mostly from the capital market authorities, and also from the other institutions involved in the financial system, that should help overcome the uncertainty and fear hanging over the markets in the last days.

Dan Ioan Popp, managing director of Impact - one of the top companies listed on the stock exchange - believes it is only a firm intervention by the authorities that can calm down the current situation.

'The political and economic officials should voice a firm viewpoint, that should reassure the investors and restore confidence in the system, in the principles of the market economy', he said.

The Bucharest Stock Exchange took the full blow of the international crisis on Wednesday, when it recorded the steepest fall since its opening in 1995, a fact that prompted the BVB managers to suspend trading over the entire day. Panic was Wednesday's watchword. More than 2.5 billion euros 'disappeared into thin air' in just one hour. The most important shares lost over 14 percent. The central banks announced rescue plans worth several hundred billion euros. The new level by which the Romanian banks deposits are guaranteed is 50,000 euros.

The National Bank officials made public statements on Wednesday, telling the population that there are no banks facing liquidity problems in the Romanian banking market.

Prime Minister Calin Popescu-Tariceanu himself sought to reassure the Romanians, telling them that the suspension of trading on the Bucharest Stock Exchange is a common procedure in such situations and stressing the BVB 'will recover very quickly'.

 

Sursa: http://www.rompress.ro

Tags: bvb investors exchange stock bucharest air bnr

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