If an investor had placed an amount evenly distributed in 12 of the most liquid and longest enduring shares in the 1st tier of the Bucharest Stock Exchange between 1999 and 2002, the value of shares in the portfolio would have increased more than 38 times by the end of last year and 31 times in real terms, according to a ZF analysis based on data supplied by Intercapital Invest. With the same amount of money placed in bank deposits at the beginning of 1999, the investor would have boosted their fortune only 5.7 times and would have made a 20% loss in real terms because inflation exceeded the amounts offered by banks during the same period.
Results show that even after experiencing the biggest stock exchange crash in the past decades, the Stock Exchange yielded much more than other types of investments on long term. One needs to also consider the sky-high Stock Exchange rises that followed the 1998 crash, which some brokers think we will never come by again, because the market has reached a certain level of maturity.
The analysis included shares of Azomureş Târgu-Mureş (AZO), Antibiotice Iaşi (ATB), Alro Slatina (ALR), Banca Transilvania (TLV), Turbomecanica Bucureşti (TBM), the five SIFs, OMV Petrom (SNP) and BRD Societe Generale (BRD), all belonging to the 1st tier of the Stock Exchange.
If an investor had placed an amount evenly distributed in 12 of the most liquid and longest enduring shares in the 1st tier of the Bucharest Stock Exchange between 1999 and 2002, the value of shares in the portfolio would have increased more than 38 times by the end of last year and 31 times in real terms, according to a ZF analysis based on data supplied by Intercapital Invest. With the same amount of money placed in bank deposits at the beginning of 1999, the investor would have boosted their fortune only 5.7 times and would have made a 20% loss in real terms
