Property Fund shares lose one third of value in two months

The shares of Property Fund (Fondul Proprietatea) are
currently trading at 35% of their face value, on the segment of
classifieds, down over 30% from the 0.5 RON peak reached in March,
according to information ZF got from persons involved in
transactions. As the Fund is not listed for the time being, stock
transactions are carried through the Central Depositary, based on
agreements between sellers and buyers. Stock supply and demand meet
through classified ads. Though they are not traded on the Bucharest
Stock Exchange, the Fund’s shares have been hurt by international
stock market turmoil, in the context where entities involved in
transactions are largely foreign investment funds and sophisticated
investors closely watching the trend of the crisis. “After having
soared in the past year, the Fund’s shares have registered a
correction in the past weeks. At present, transactions are sealed
at a price of 0.34-0.35 RON/share. The reason behind the correction
is not related to the situation of the Fund, but particularly to
the very high volatility on the domestic and international stock
markets,” said Adrian Lupsan, a deputy general manager with
Intercapital Invest brokerage.