On a stock market altered by the global climate and somber macroeconomic news, issuer’s earning results could have a mild impact on the evolution of BSE, say the specialists polled by Wall-Street.

The first effects of the crisis will be visible in the financial results

As of this week, the companies listed at the Bucharest Stock Exchange are expected to make public their earning reports for 2008. Insiders say the effects of the financial crisis will be visible in these balance sheets, although the real declines will be included in 2009’s outcomes.

“The issuers’ results will be positive and negative, as usual, with wide-bandwidth variations. At yearend, the companies usually do some accounting operations that untune the rhythm throughout the year, for example, the provisions or reassessment of accounts receivable and debts in other currencies than local currency. And as the financial reports of listed companies rarely enclose any information on these aspects, it is difficult to estimate what would be the impact on their Q4 results”, said Paul Brendea, analyst at Prime Transaction.

Andreea Gheorghe, director of analysis department at Intercapital Invest, told Wall-Street that he expected weaker financial performance of issuers in fourth quarter than in first quarters last year, if the activity of the companies was not a seasonal one.

“When I say performances, I mean profitability above all, which should be crippled both by rising financing costs (banking loans), and by weakening growth pace of turnovers. The average indebtedness level registered by the companies floated at the regulated market of BSE was about 35% after Q3 2008 (counting down the banks and Oltchim). The depreciation of the leu against the foreign currencies and the growth of loan rates will surely add one-time charges from the first three quarters of 2008, therefore a high