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Brokers recommend prudent stock buying only to investors looking ahead to at least three years

Brokers recommend gradual and prudent stock buying, at present, only to investors looking ahead to at least three years, while short-term investors should exert utmost prudence and should limit their stock exposure.

'The current prices may be attractive to the long- and very long term investors (at least three years) by gradual accumulation in the next 12 to 24 months. As for the short- and very short term investors (ranging from a few hours to a few weeks) speculations may be attempted, but only at the right moment, with small amounts and at much higher risks than in the past', manager of brokerage firm Intercapital Invest, Razvan Pasol said.

The Romanian capital market is seeing an overall downward phase, prompted by the circumstances in the global financial markets; such phase will see significant prolonged falls, with the Intercapital Invest brokers recommending utmost prudence on the medium-term, in the next 12 months at least.

'The problems in the global financial system will not be solved in a few days, weeks or months. Moreover, there is increasing fear that such problems will take their toll on the economy, triggering a recession in the developed countries, and in other countries as well. In fact, the recession has already begun in several countries. Therefore, the circumstances stay negative in the year to come at least. As such, we cannot expect a major change of trend on the Bucharest Stock Exchange (BVB). We are going to see times of big volatility alternating with times of stagnation. We are also going to see times when (the BVB) will pick up, but only on the short-term, meaning a few days, a few weeks or months. /.../ The risks, however, remain high and a possible recovery will definitely not be a long-term instance or a sweeping one', Pasol argued.

He recommended utmost prudence and a limited exposure in terms of stock. His recommendation refers the medium-term (9 to 24 months), for a typical Romanian investor, who places money on the short-term. He said that the current scenario is a good opportunity for the same investor to get initiation in trading on the BMFMS Commodity Market, in order to speculate the fall by short selling.

The BVB key BET index referring the evolution of the top-10 liquid listed companies fell 27.04 percent in the last week, while in the full-2007 it recorded a rise at 22.05 percent and surged 22.23 in 2006. The BET index, since its historic high in July 2007, has lost its entire three-year rise, falling down to values it saw in mid-2004.

The Stock Exchange capitalisation last week shrank nearly 28 billion lei (more than 7 billion euros), with the listed companies seeing their market value plunge from 89.48 billion lei to 61.68 billion lei. All the stock exchange indices fell. BET went down 27.04 percent, closing at 3,187.77 points, while the BET-FI index was down 44.75 percent, closing at 15,200.57 points.

The BVB opened Monday's trading session on surge, after quotations plunged last week, with the key BET-C index trading by 7.39 percent higher in the opening of the session.

The BET index referring the evolution of the top-10 liquid listed shares, was up by 7.51 percent, while the BET-FI index related to the Financial Investment Companies (SIF) was up sharply by 11.11 percent.

 

Sursa: http://www.rompress.ro

Tags: months bet index percent brokers short investors stock years least three sif bvb

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