The board members of the Bucharest Stock Exchange agreed to list the shares of the stock exchange on Tuesday, June 8,
Mircea Botta, vice president of BSE told Wall-Street. After getting the BSE Council approval for the operation, the actual listing of the institution’s shares is only one week away.However, the institution will not go public through an IPO, but a secondary sale offering, which will enable the institution gain capitalization and new issuer.The Bucharest Stock Exchange is the central component of the BSE group, which includes the Central Depository, Bucharest Clearing House, Investors Clearing Fund, and the Institute of Corporate Governance. The first three are 66.80%, 52.51% and 56.93% respectively held by BSE.BSE’s total revenues dropped 17.5% year-on-year in 2009 and 45.9% YoY in 2008, largely due to the decline in annual trade value.
Bucharest Stock Exchange doubles profit in Q1
Bucharest Stock Exchange (BSE) said its quarterly profit rose to 2.47 million lei (€0.6 million) almost double from the same period of last year.In Jan-Mar 2009 period, the institution’s profit was 1.23 million, while revenues stood at 2.27 million lei.The market operator’s turnover doubled to 4.44 million lei, while revenues grew to 6.09 million lei.First-quarter expenditures dropped 4% to 3.14 million lei, from the same period of last year.Bucharest Stock Exchange is the central component of the BVB group, which includes Central Depository, Bucharest Clearing House, Investors’ Clearing Fund and Institute of Corporate Governance. In the first three, BVB holds 66.80%, 52.51% and 56.93% interest respectively.
How analysts see next seven months on the Stock Exchange
Analysts and brokers on the market expect the Stock Exchange to feel the internal and external challenging macroeconomic context during the following months, advising investors to take shelter in stocks of defensive fields or position themselves on liquid stocks that can offer them rapid exits in case market declines deepen. On the other hand, stock valuation indicators are now much more appealing compared with one month ago, in the context where prices have fallen and profits registered a slightly upward trend in the first quarter. Thus, the overall Bucharest Stock Exchange P/E slid to a level of 10.8 in late May, after having hit 20 in April, close to 2007 peaks. Valued at the level of accounting assets, companies listed on the BSE still seem cheap, with stock prices generally below their accounting value. Adrian Danciu, head of the research department of Broker Cluj, believes investors should focus on companies benefiting from inelastic demand, such as those in the food or pharmaceutical sectors.
Source: Actmedia - 08/06/2010Bucharest Stock Exchange doubles profit in Q1
Bucharest Stock Exchange (BSE) said its quarterly profit rose to 2.47 million lei (€0.6 million) almost double from the same period of last year.In Jan-Mar 2009 period, the institution’s profit was 1.23 million, while revenues stood at 2.27 million lei.The market operator’s turnover doubled to 4.44 million lei, while revenues grew to 6.09 million lei.First-quarter expenditures dropped 4% to 3.14 million lei, from the same period of last year.Bucharest Stock Exchange is the central component of the BVB group, which includes Central Depository, Bucharest Clearing House, Investors’ Clearing Fund and Institute of Corporate Governance. In the first three, BVB holds 66.80%, 52.51% and 56.93% interest respectively.
How analysts see next seven months on the Stock Exchange
Analysts and brokers on the market expect the Stock Exchange to feel the internal and external challenging macroeconomic context during the following months, advising investors to take shelter in stocks of defensive fields or position themselves on liquid stocks that can offer them rapid exits in case market declines deepen. On the other hand, stock valuation indicators are now much more appealing compared with one month ago, in the context where prices have fallen and profits registered a slightly upward trend in the first quarter. Thus, the overall Bucharest Stock Exchange P/E slid to a level of 10.8 in late May, after having hit 20 in April, close to 2007 peaks. Valued at the level of accounting assets, companies listed on the BSE still seem cheap, with stock prices generally below their accounting value. Adrian Danciu, head of the research department of Broker Cluj, believes investors should focus on companies benefiting from inelastic demand, such as those in the food or pharmaceutical sectors.
