Another shattered myth: FP drops below 0.6 lei on the Bourse

Fondul Proprietatea shares yesterday broke the 0.6 RON/share threshold, hitting the lowest level since the January 25 floatation. The 108m-euro profit of 2010, double the budgeted one, and the announcement on 50m-euro dividends did not manage to halt the decline. Brokers say investors do not look at financial results and are selling to cash in on their profits.
On the high selling pressure, doubled by the little favourable market conditions, FP shares yesterday reached a 0.59 lei/share low. Against Tuesday, the decline tops 1%, while against the 0.65 lei per share high reached in the first days of trading, the decrease goes as high as over 9%. At a 0.59 lei price, the Fund’s value on the Bourse stands at 8.1bn lei, 44% lower than the portfolio value.
“(…) The latest prices FP shares registered on the grey market ranged between 0.45 lei/share and 0.5 lei/share, and for many the price at which the shares entered the Bourse, of 0.6020 lei, was too high. The previous benchmark on the grey market largely influenced the trend of shares on the Bourse and drove investors’ interest down after the first days of trading,” believes Mihai Chișu, a broker with IFB Finwest.