With the Bucharest stock market slightly falling down in the first week of 2009, and bottom dropping out of the local currency, the question ‘Where to invest in 2009?’is now on all investors’ lips. Whether stock, bond, real estate or mutual funds, each investment must be customized according to investors’ preferences, analysts polled by Wall-Street say.
Andreea Gheorghe, manager of analysis department at Intercapital Invest says the large gain period at BSE ended in early 2008.
“Now, it is certain that 2009 will not be marked by massive gain spree at BSE, whereas it can be a good year for amassment, probably in the second half. I don’t expect a trend switch, but we will see broad declines only if things will get hasty next year or if 2009 events will prove to have been over-evaluated”, said Andreea Gheorghe.
Although on the capital markets there are both shares and safety sectors for investors that yield low returns at low risks, at Bucharest Stock Exchange, the issuer configuration cannot offer a safety sector in this bad economy, and companies with good financial prospects for 2009 will be isolated or random, generated by specific factors, Andreea Gheorghe added.
Bucharest Stock exchange anticipates the economic evolution, as in 2007 and 2008 had a negative response before the local system worsens. Therefore, the same thing will happen in case of a bullish trend.
“The selection on issuers will be made based upon potential estimates and attractive assessment indices, the potential being generated by various factors (performing management, interesting field of activity) and less on the dynamic registered by the companies”, said Intercapital representative.
She also stressed that if the local and international climate remains bleak, there must be considered the fact that the declines registered in the last year and a half were dras
