Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda
Nuclearelectrica’s Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult›
“Putting capacity growth projects planned in Morocco and Romania on hold” – is one of the measures included in the draft plan of Renault Group… Mai mult›
Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult›
GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult›
Green Deal / New, additional European funds for Romania – negotiation position assumed by MEP Siegfried Muresan
The transition to a green economy needs to be supported by new, additional European funds, distinct from Romania’s allocations from the future EU multiannual budget.… Mai mult›
de Adrian N Ionescu , 5.11.2018
On the other hand, the local stock exchange continues to suffer in terms of liquidity, in the absence of new listings of large companies, according to a PwC Romania report.
“The local capital market looks good, but it still has a low liquidity and needs a constant number of initial public offering (IPO),” says Ileana Gutu, Senior Manager -economic assessment and analysis services, PwC Romania.
In the last three years, only two large IPOs, MedLife and DIGI Communications, have taken place in Bucharest, but they have not led to a consistent increase in the value of transactions, still capped below EUR 10 million a day.
Instead, Hidroelectrica’s listing keeps being postponed, a listing from which an increase in liquidity is expected, which would advance the Romanian stock market from frontier to emerging market status, which would considerably multiply foreign investment flows.
Unlike the Bucharest Stock Exchange, Sofia Stock Exchange ranks fourth by the value of IPOs issued in the third quarter of the year, due to the listing of Gradus poultry meat producer in August, according to the latest IPO Watch Europe report published by PwC.
First three positions are held by London Stock Exchange, Euronext and the Italian Stock Exchange. In the third quarter of 2018, IPOs launched in Europe amounted to EUR 3.9 billion, less by 53% compared to the same period of 2017.
The geopolitical situation and the summer holiday “affected the activity on the capital markets in the third quarter, when IPOs launched in Europe reached the lowest levels in the last two years,” said Sorin Petre (photo), Partner – economic assessment and analysis services, PwC Romania.
“The fourth quarter forecasts have to be analysed in the light of the recent signals from the world capital markets that have seen some major corrections in some cases. In this context, it may take some more time before we see a mega-IPO,” adds the expert.
BET index of the Bucharest Stock Exchange, the second best performing reference index in the EU after the Cypriot index (CYMAIN), represents the weighted average of price variations in top 13 most important companies listed on the BSE.
Another important index for Bucharest, NET -TR “total return” index, which includes dividends, increased by 17.54% in the first nine months of the year.