The capitalisation of the Bucharest Stock Exchange (BSE) and the value of market transactions are set to rise considerably starting in 2006. For 2005, market representatives expect only a modest increase in stock market capitalisation and the value of transactions.

In 2006 the total value of companies listed on the stock market is expected to be almost twice the current amount, according to a PricewaterhouseCoopers study presented by BSE representatives.

"For 2005 we do not anticipate any significant increases in stock market indicators. But starting in 2006 we expect to see big increases in capitalisation and volumes," said Stock Exchange chairman Sergiu Oprescu during the "Capital Market Workshop" organised by Piata Financiara. The rise in capitalisation will be mainly due to the floating of state-owned companies in the energy sector, which will begin to appear on the Stock Exchange as of next year.

Transelectrica is expected to be floated in the second quarter of 2005. This will be followed by the end of the year by two of the eight branches of Electrica (Transilvania Nord and Muntenia Nord), with the remaining six branches likely to follow in subsequent years, according to Doru Voicu, Electrica's privatisation manager.

Transgaz, Romgaz, Constanta Harbour and Henri Coanda Airport are scheduled for listing in 2006 as part of a government programme to support the capital market.

According to Government adviser Ion Popa, the brokerage firms that will handle the stock offerings of the first companies to be listed in 2005 will be selected by the end of this year. vlad.nicolaescu@zf.ro

The capitalisation of the Bucharest Stock Exchange (BSE) and the value of market transactions are set to rise considerably starting in 2006. For 2005, market representatives expect only a modes