BUCHAREST STOCK EXCHANGE: FUTURE OUTLOOK 2010

BUCHAREST STOCK EXCHANGE: FUTURE OUTLOOK 2010

2009 proved to be eventually a better year than expected, as the local stock market performed beyond expectations. Although, it was a volatile market, all BVB indices performed positively during 2009, with even higher performances of the sector indices than  the blue-chip index BET. BET recorded a 60% recovery at the end of the year, while the financial services sector index BET-FI rose almost 90% compared to the previous year-end.

Liquidity was the main concern of both market participant but also of the BVB management.  The average daily turnover contracted to Euro 5.4 mil from Euro9.3 million in 2008.  Therefore, the main objective of the BVB management will be to improve the market liquidity. All efforts are made to attract new companies for listing and to launch new products. In this respect, BVB is having discussions with key players in the ETF markets that are interested in launching these products locally.

With assets worth more than Euro 3 billion, the listing of the Property Fund has been the most awaited event for the last couple of years. The selected fund manager, American company Franklin Templeton, is looking to finalize the Fund listing by the end of 2010.
As the political effervescence was left behind after the elections end, the IMF stand-by agreement is well on track and real sings of economic recovery already exist, BVB believes that 2010 will bring considerable enhancement in the turnover and liquidity at BVB.

What it is to be considered a cornerstone in BVB Exchange’s modern history is the decision to list BVB shares on its trading platform. This major event is expected to take place in the first half of 2010.