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Bucharest
October 24, 2021
BUSINESS

US Ambassador worried over halt of privatisations

Romanian investors want Bucharest Stock Exchange to be as transparent as New York Exchange.

US Ambassador in Bucharest, Mark Gitenstein said yesterday he was worried about the fact that privatisations were not continuing, Mediafax reports. He also noted that privatisation processes should equally be transparent and credible.He refused to name any specific case, just saying that ‘it was the business of the reporters’. ‘I am worried that privatisations do not continue. Those are assets of an unbelievable value for average Romanians and, in some cases, they have been wasted or taken advantage of. And we would like all Romanians to benefit from them, not just a certain group’, said the American diplomat. The US ambassador also stated that, in the previous two weeks, there had been some controversy ‘about Western companies trying to buy Romania piece by piece’. He said the best solution would be for Romanians themselves to invest in Romania.  “I think the important thing is that there has been a lot of controversy in the last few weeks about Western companies trying to buy a piece of Romania. The beauty of this new system is now Romanians can buy a piece of America and that’s a good thing’, Mark Gitenstein added.He said the important thing was that anyone interested would be able to buy shares ‘not just in some giant companies, but also in companies that are traded on the New York Exchange’, and which are controlled by the American system governed by very strict rules. The ambassador made these statements during the official opening of the trading session at the Bucharest Stock Exchange (BVB) where Coca-Cola, Bank of America, Intel, Apple and Visa stocks started being traded. Moreover, Gitenstein holds the view that Romanian investors willing to buy shares in companies listed on the New York Stock Exchange will demand that its transparency standards also apply to the BVB.

Vanguard Asset Management is set to open its first open-end investment fund listed on the BVB

Vanguard Asset Management, the investment management fund held by the Tradeville brokerage house, is going to open the first open-end investment fund listed in Romania.“We are preparing a new instrument, the first Romanian Exchange Traded Fund (ETF) to be listed on the BVB,” said Mihaela Baciu, chairman of the Tradeville Board of Directors (CA) and general manager, who provided no insight into either the fund structure or the investment assets.This fund type usually follows the structure stock exchange index structure. The shares can only be redeemed from the management company by the brokers who struck an agreement with it, and not straight from their clients. Brokers’ clients can only buy or sell ETF unit funds on the exchange.

Stagnant trading at start of Wednesday session

The BVB indexes fluctuated insignificantly at the start of yesterday’s session amid a low liquidity market, with traders only trading shares issued by 21 companies, under RON 1 M.  SIF Muntenia shares were suspended from trading last Wednesday in order for the General Assembly of Shareholders (AGA) to be held and investors informed about the decisions reached by shareholders on Thursday. The company is yet to convey a report laying out  AGA’s decisions.According to Ziarul Financiar, businessman Gheorghe Iaciu, owner of the Doraly commercial center, along with a group of shareholders, opposed during the AGA the passage of the 2011 SIF Muntenia summary report and this year’s revenues and spending budget. He called on Muntenia Invest, the the SIF’s managing company, to triple the value of dividends last year.

 

 

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