The main trends on the 2011 capital market will be determined by the listing of Fondul Proprietatea (Property Fund - FP), which will increase visibility of the Bucharest Stock Exchange in the region and will force the main market participants (Stock Exchange, brokers, regulator, as well as investors) to modernise.
The listing of Fondul Proprietatea (FP) has been the most awaited event on the Stock Exchange every beginning of the year in the past four years.
Now the FP listing is certain, after the CNVM (National Securities Commission) approved the listing prospectus at the end of last year, with the brokers (Raiffeisen Capital&Investment), BRD and ING Bank) agreeing that manager Franklin Templeton bring the fund to the Stock Exchange on January 25th.
The listing in the very first month of the year will enable most of the effects of this event to be felt on the Stock Exchange by the end of the year. They will be both quantitative effects, such as an increase in the capitalisation, in the free float (shares of a public company freely available to the investing public) and in the value of transactions, as well as in the number of local and foreign investors.
Just as important are qualitative, indirect effects, with the FP listing being a trigger for modernising the Bucharest Stock Exchange (BSE). Whether they want to or not, local brokerage firms will be forced to make significant changes in their internal structure (such as the introduction of global accounts), which will lead to better services for investors, be they local or foreign.
The main trends on the 2011 capital market will be determined by the listing of Fondul Proprietatea (Property Fund - FP), which will increase visibility of the Bucharest Stock Exchange in the region and will force the main market participants (Stock Exchange, brokers, regulator, as well as investors) to
