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Stock exchange up 24 pct in six days

The increases experienced in the past week allowed the Bucharest Stock Exchange (BVB) to recover a part of the October losses, the worst month ever.

During the stock exchange session on Monday, the Financial Investment Companies (SIFs) shares posted a growth of more than 14 percent, reaching the highest possible level, resulting in BET-FI increasing by 14.25 percent by the end of the session, rated third among the daily rises since the release of this index in 2000. Compared to end-October, the BET-FI gained some 46 percent. This occurred after the SIFs lost 56 percent on average over the course of last month.

Moreover, BET index saw a significant surge of about 6 percent, thus recording a growth 17 percent higher than the closing values in October.

The BET index reflecting the performance of the ten most important listed companies went down in October by 32 percent.

Also in Monday's session, Petrom shares surged by some 8 percent and by more than 37 percent against the beginning of the month. At the same time, BRD-Societe Generale shares, the main listed bank, rose on Monday by 9 percent and 27 percent in the past six sessions.

'The recent increases are a natural effect of the October crash, but it is hard to predict whether such evolution is sustainable or not. On one hand, we receive negative news from the external markets and the current prices sustain the increase of sales, on the other hand. I believe November will be the month of uncertainties in Romania', said Octavian Molnar, deputy general manager of the IFB Finwest brokerage company headquartered in Arad (western Romania).

Analysts are reluctant to such Stock exchange rebound, especially as Romania's credit rating has been downgraded firstly by Standard&Poor's and secondly by Fitch. Moreover, such hikes will result in a profit rise of the speculators, which might prompt corrections to the same extent.

'The recent increases are extremely surprising, while the international situation continues to be blurred. It is clearly a reaction of the market to the significant plunges last month, but I do not believe it is a sustainable one. We are dealing with a market rebound, on short term, supported mainly by the domestic speculative investors. I think corrections will be made concurrently with the speculators starting to gain profit', Leonard Visan general manager of the Investica investment management company said. The spectacular recovery in the past two weeks was also possible due to the foreign investment funds lessening the pressure on sale after having withdrawn some 23 million euros from BVB in October.

'The Stock Exchange continues to be extremely volatile to the external news, whereas the domestic increases are mainly favored by the enthusiasm of the foreign investors and I do not believe next period of reports made by local companies will decisively influence the market', Investica representative said.

 

Sursa: http://www.actmedia.ro

Tags: month percent stock october exchange brd bet bvb

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