Bucharest Stock Exchange expects five-fold higher profit

The BSE shareholders yesterday endorsed the 2006 budget during the General Meeting of Shareholders. “The profit estimate is largely based on achieving an average traded value of 14 million euros. We are seeing a lower value at the moment, around 11 million euros, but we believe things will improve throughout the year, given that we had an average daily volume of more than 16 million euros at the beginning of the year,” Stere Farmache, the general manager of the Bucharest Stock Exchange, told ZIARUL FINANCIAR. The Bucharest Stock Exchange anticipates to make 50 million RON (14.28 million euros) in revenues this year, compared with the 28 million RON (7.7 million euros) in 2005. “The budget may be revised at any time. What”s important to point out here is that if we make the revenues we set out to sooner (than planned), we will cut commissions by 15%,” Farmache said. The BSE will not grant dividends in cash from last year”s profit to its shareholders, with most of it set to go to reserves. It is to increase its share capital from 22.6 million RON to 34.8 million RON by incorporating the already existing reserves and the merger premium. Its shareholders will get bonus shares. ZF