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BVB's Anghel: Romania's capital market has performed very well, despite regional turbulence
Romania's capital market has performed very well, despite regional turbulence, with the high level of the dividends paid by the listed companies compared with the rest of the region, having been a plus, Chairman of the Administration Board of the Bucharest Stock Exchange (BVB) Lucian Anghel said Tuesday.
"The capital market has performed very well, despite the regional turbulence that was being mentioned. The Romanian capital market has one remarkable feature: it pays very high dividends compared with the other capital markets in the region. Comparing an index, BET for instance, with other indices without including the dividends that set us apart in a positive way from other capital markets is a mistake. Generally, you have to compare apples to apples instead of apples to pears. If we factor in dividends, despite the turbulence in Greece and flamed perception over the entire region, the 7.42-per-cent rise in BET-TR since the beginning of 2015 is an excellent performance given the difficult circumstances. I believe investment in the local capital market this year has again proved attractive compared with other investments," Anghel told the first trading ceremony of IAR Brasov on the main ring of the BVB.
He added that investment in the capital market has to be considered in a longer term, not in terms of one week or one day.
"Much has been written about stock drops of late. I think that we should consider at least 6-12 months when analysing the performance of investment," added Anghel.
He also said he hopes the Economy Ministry and the Labour Ministry in the future will sell some of their minority shareholdings in IAR without leading to the Government losing control over the corporation, and IAR's capitalisation could continue by increasing the free float, which could in turn attract more institutional investors.
"I would personally wish the Economy Ministry or the Labour Ministry, both of which are shareholders, to be able to sell minority shares without the Government losing control. That would attract new investors and increase the free float. I believe the value and capitalisation of the corporation that operates in a high-tech province could continue to increase," he explained.
IAR Brasov (symbol IARV) is a Government-run corporation specialising in aircraft repairing and maintenance works. Trade in its shares started on the main ring of BVB on Tuesday, transferred from the Rasdaq OTC market. The transfer was decided upon by the IAR shareholders this February. Early this July, the corporation won approval for the move from the BVB Administration Board.