Anghel (BVB): the Romanians doubled investment in five years: we are second out of 14 analysed markets
The investors on the capital market doubled in euro the investments in five years, the gross yield being 97% out of 14 markets analysed, Romania being second from this point of view stated on Saturday at the Forum for individual investors Lucian Anghel the chairman of the BVB.
‘The Romanians doubled in euro their investments in five years, the yield is 97% in euro taking into account the dividends as well. We analysed 14 regional indicators, changed them into euro, according to the Bloomberg data and we compare apples to apples, as it is useless to compare Zlot to lei with Czceh kroon with Forinz and euro (…).We are an untypical market. It is for your advantage as investors the fact that we have very big dividends. Out of the 14 analysed markets, main indicators we are second in five years: 97% almost doubled in euro in the last five years. We surpassed Germany, the DAX indicator, we surpassed Hungary, we surpassed France and out of these indicators only Romania, Croatia and Germany have had positive yield year after year, which is very important. When we compared Romania and Poland and we said 6-0 we said that they beat us at football. (…) For capital movement they are better than the whole Europe. The volume of capital movement for the stock exchange of Warsaw, if we want to add the volume of the capital movement for the stock exchange of Vienne, plus Budapest, plus Prague, plus Bucharest, plus Sofia, plus Zagreb, plus what you want, we still cannot reach them. They are better than everybody for capital movement. For yield they had 15%. We 97%, Anghel explained.
He said that for investors what matters most is the yield and not the capital movement of the stock exchange and as at present the value of the shares surpassed the one before the crisis, the investment on the stock exchange representing a better alternative for placement than in real estate.
Anghel showed that the dividends will remain at a relatively high level for the years to come. Thus, if we talk about an average dividend of 7% we can consider that it is an investment with protected capital of up to 7%.
‘If the price of the share went down to 7% the dividend would cover this thing, practically I wouldn’t lose as investor. Evidently, if this dividend is consistent in the years to come. If we have a drop of 1% the dividend gets me to plus. We have to see the yield as taking into account the dividend’ the BVB official said.
On the other hand, Lucian Anghel mentioned that there are discussions for the reduction with 12% of the taxes which the stock exchange takes on the market, to move a part of the tradings from the Deal market.