Pipe producers, as well as some aeronautics and electronics companies brought some the biggest gains on the capital market in the first eight months of this year, given that these companies' profits witnessed considerable increases in the first half of the year.
Some industrial sectors, such as pipe production, aeronautics or electronic equipment production, have posted significant growth over recent years amid the rising demand globally for capital goods, particularly coming from emerging markets, such as China or Russia.
"At least in Eastern Europe, there's rising interest in companies in the industry. Most industrial companies have been privatised and the investors that took them over mean business. On the other hand, given the weak performance of these companies over a good period of time, their shares were undervalued, yielding a high growth potential for the following period," explained Dorin Danescu, manager of Star Asset Management investment management company.
Romanian investors' interest in these companies has also increased given the negative trend of SIFs in H1 and the fact that banking or pharmaceutical companies shares, so far investors' favourites, are viewed as overvalued by many analysts.
"(...) Pipe producers were not highly attractive several years ago, but after being privatised they gained access to foreign markets and invested massively in equipment, which boosted their turnover and profits," explained Adrian Danciu, an analyst with Broker Cluj.
Foreign conditions were also extremely favourable for pipe producers. Rising oil prices boosted drilling operations and implicitly pushed oil industry pipe demand higher.
Pipe producers' shares have been one of the most profitable placements over the past two years, witnessing solid growth amid the spectacular rise in their turnover and income.
Aeronautics firms
