The market capitalisation of Petrom, Romania's most important company, overshoot the 8 billion-euro mark on the Bucharest Stock Exchange yesterday, leaving behind its main owner, Austrian OMV Group.
The interest of financial investors pushed the quote for the Romanian company to a record high of 5,250 ROL (0.14 euros) per share. Yesterday's trading amounted to 1.2 million euros, with 6.8 million shares changing hands.
The irony of this is that the difference between Petrom's market capitalisation and that of OMV is in region of 622 million euros, almost as much as the 33.34% stake in Petrom was worth that the Austrian company bought from the Romanian state last year.
Back then, the cost of one third in Petrom was 669 million euros. This is now worth 2.695bn euros on the Bucharest Stock Exchange (BSE), effectively netting the Austrian company more than 2bn euros only two months after taking over the company.
Petrom's quote is now four times higher than one year ago, since which time the European currency has lost a lot of ground against the ROL.
Brokers say the increase in Petrom's share price is primarily due to the foreign investors that keep spending on the capital market. They have to raise the price of the shares if they want to buy several million euros' worth. Theoretically only 7% in Petrom makes up the free float, though the actual amount is lower since stakes have already been formed. The most important minority investors are SIF Oltenia, Broadhurst investment fund, the Petrom union and various foreign investment funds. The Petrom union could buy 8% in Petrom at the same price paid by OMV, i.e. half the current price on the BSE.
Given the upward trend on the market of recent months, few investors are willing to sell.
"Foreign money keeps flowing into the stock exc
