Indices of Bucharest Stock Exchange slid 60% from all-time highs, quotations dropping to 4-5 year-lows and investors are seeing their portfolios taking a nosedive. In a first phase, part of a larger project, Wall-Street.ro, together with specialists at the stock market and investors is trying to identify the most important financial instruments that Romanian market needs in these gloomy times.

Isn’t there any “chill pill” for the stock market’s spike?

“For stock market recovery, the best spur would be a good management of economy and finding viable solutions to weather the effects of the crisis and to prove that the slumps at the stock market are overreacted. However, if the economy whose exponents are companies listed at the stock market will be severely impacted, then, the prices will probably be justified. This possibility is a dark shadow of the future, but unfortunately possible”, said Adrian Duna, analyst at KD Capital Management.

“There are many instruments not yet available at BSE, from short-selling, to warrants. It is hard to say whether they are the ‘wonder instruments’ in these times or not. One thing is clear, implementation of some of them, such as short-selling, would be difficult in a bearish market, and might lead to even bigger unbalances. This kind of products should be introduced and promoted when the market takes a normal path. It is not necessary to be a bullish trend, more important is the lack of high volatility,” said Florin Irimin, broker at Intercapital Invest.

Vlad Doruc, analyst at Vanguard does not think short-selling would be well-timed, as it would lay a bigger pressure at purchase than in the last period.

“Of course, options can be introduced (in case of BSE), although I don’t think it will be very successful as investors show no interest in futures contracts. It is advisable that these instruments to be