Fondul Proprietatea Reaches All-Time High, Lifting Bucharest Bourse For Fifth Consecutive Day

08.07.2013 By Bogdan Neagu

Bucharest investors avidly traded Fondul Proprietatea (FP.RO) Wednesday, and the shares of the Romanian investment fund touched an all-time high at 0.681 lei (EUR0.15) during today’s session.

Proprietatea closed up 1.2% on the day at RON0.68 per share, also the highest closing price since January 25, 2011, when the fund listed in Bucharest. Transfers with the fund’s stock amounted to RON11.5 million, almost 30% of the bourse’s traded value of RON40 million (EUR9 million).

Brokers believe new funds are entering the market, after the central bank’s recent rate cut, which seemed to have increased interest for stock investments, as deposit rates are likely to fall in the coming period.

Monday, the central bank cut the key rate by 50 basis points to an all-time low of 4.5%, and yields of bank deposits and state bonds are expected to soon follow along.

Many stocks have benefitted from the fund inflow, and nine of the ten components of BET index ended in green, with only  Biofarm (BIO.RO) staying flat on the day.

BET rose 108.89 points, or 1.93%, to 5,754.48, while composite index BET-C added 44.23 points, or 1.47%, to 3,045.13.

BRD-Groupe Societe Generale (BRD.RO) rose 2.7%, and OMV Petrom (SNP.RO) increased 2.1%. Banca Transilvania (TLV.RO) gained 1.5%, while Transgaz (TGN.RO) closed almost 1% higher.

Investment funds also took advantage of the euphoria surrounding Fondul Proprietatea, and BET-FI rose 3.04%, or 746.37 points, to 25,289.87. SIF Muntenia (SIF4.RO) soared 5.8%, SIF Oltenia (SIF5.RO) gained 4%, and all the other three SIFs closed around 3.3% higher.

Bucharest benchmark index BET-BK was up 2.46% and BET-XT added 2.31%. Energy stocks tracker BET-NG closed 1.5% higher.