The Bucharest Stock Exchange-BVB suffered a general correction of 3.5% and the BET index showing the evolution of the best performing listed shares dropped 3.70% today as international markets fell deep on Tuesday and Wednesday.
“The phenomenon in Bucharest is perfectly normal as a majority of emerging markets reported rather massive falls yesterday and today”, says Liviu Moldovan, a WBS Holding analyst. As long as only capital markets are affected seriously, one can state the situation is still OK.
“If the shockwave hits Forex markets, especially currencies in emerging markets, then big problems may appear. We’ll have a clearer image within days”, he said.
Moldovan added: “the losses reported yesterday continued on foreign markets today. Germanys’ DAX30 went down 1%, Eurostoxx50 - 1.3%, FTSE100 - 1.16% and Nikkei225 in Japan - 2.85. But the first positive signs are already there as Bovespa in Brazil upped 1.42%, Merval in Argentina grew 0.08% and the Mexico exchange grew 1.2%%”.
According to BVB general manager Stere Farmache, the BET fall is a consequence of events on international markets. And BVB president Septimiu Stoica told HotNews.ro that “the market moves daily, but we cannot ignore the past couple of days. It appears the Romanian market was among those influenced by the fall of Chinese stocks as well”.
The Chinese red zone stands at the origin of the recent falls worldwide.
The BET-C composite index fell 3.42% to 5,618.57 points on Wednesday, while the BET index lost 3.70% down to 8,749.46 points. The BET-FI index showing the evolution of the five Financial Investment Societies (SIFs) lost 2.77% reaching 59.753.57.
49 of 60 traded companies reported losses, including all SIFs, Petrom, Rompetrol and Transylvania Bank.