Alro and Otelinox on top this week

Brokers will most attentively eye this week Alro and Otelinox stock, for which important price variations are expected, but financial investment companies might also set the tone this week, some operators estimating that these companies are getting ready for the “autumn increase.”

Traders say that Alro stock price might range between 190,000-215,000 lei per share by Wednesday, and then, after the reference date, quotations will drop in accordance to the company’s share capital raise and stock splitting operations.

“By Wednesday, the price will be set by the force balance between those who want to sell and those who want to keep the stock after the reference date,” Iulian Stanescu, a trader with Vanguard Securities, told Ziarul Financiar.

Alro Slatina will reassess its assets and is to raise its share capital, and its shareholders will receive, should the General Assembly of Shareholders approve the operation, 1.48 shares for a share held in Alro.

At the same time, the number of stock in circulation will be multiplied five fold, following the decrease in the face value from 25,000 lei to 5,000 lei per share.

An accounting operation in essence, but that, as bourse experience shows, brings along a higher company value on the bourse, since the cut down in the face value allows investors holding small sums to buy stock in the company.

“It is hard to make an estimation of Alro quotations. There will probably be speculations as well,” Valentin Ionescu, an operations director with EuroInvest Vision, told Ziarul Financiar.

Operations expect a good week start for financial investment companies. “Quotations of the five SIFs will be stable at the beginning of the week, or it might rise. We might have a drop at the end of the week,” Valentin Ionescu commented.