The restricted market activity at Bucharest Stock Exchange it’s directly affecting the utmost of brokerage firms. Independent SSIFs are open targets, enterprises who don’t benefit of any support from a financial group. Managers in the Romanian equity market share their insights on the status of the companies they guide through these stormy times.
Confident Invest: We will probably remain on deficit another year
The sharp downdraft of flows at Bucharest Stock Exchange has affected the utmost of the SSIFs, especially the independent ones, who don’t enjoy the support of any financial group.
Confident Invest is the Financial institution of Electromontaj Industrial Group, that targets small shareholders and possible clients with portfolios below 100,000 euros.
Thus, SSIF’s situation is not exactly positive, as part of the agencies were already shut down late last year.
Nicolae Ghergus (photo), director of Confident, said the management of the company has already taken measures to weather the effects of the liquidity crisis, whereas the effect of low market flows was fatal.
“We have already downsized out network, by removing unprofitable units, which is actually a little later than we should, and this type of measures always have a delay margin. The effect of a shortened market flow was in fact disastrous, SSIF revenues fell 70-80% in 2007, comparative indices’ decline, we closed year with a bearable loss, as we continued the growth pace of our market share. By the measures taken, we will probably remain on deficit for another year, maybe”, he said.
According to Ghergus, the biggest problem at this moment is that there is no perspective nationwide, for the moment.
“The market share may grow, but if the market has null values, it doesn’t bring me any comfort that other players are ‘dyeing’ before me, if the same thing will h
