FP fails to put BSE on the map

The effect of FP floatation, which everybody had been expecting as a miraculous way of turning the Bucharest Stock Exchange around, has waned after a month, and the market has reverted to previous developments, with extremely low liquidity, as well as with declines for the main stocks.

FP shares were no exception, registering significant corrections, to the discontent of the thousands of shareholders, both former owners who received the stock as compensation and speculators, who had expected a positive trend and a higher price. Last week, the price of FP shares dropped below the 0.58 lei level, being 10% below the floatation level, and in the first two sessions of this week the shares traded around 0.6 lei.
The representatives of Franklin Templeton, which manages FP, moved again to quell investors’ concerns, assuring the trend of shares is impacted by the unfavourable international context.
Mark Mobius, the executive chairman of Templeton Asset Management, coordinating the team managing FP, believes investors should make long-term decisions and take guidance from the value of the fund’s assets.