SIF Moldova profit vanishes without a trace

Stock exchange brokers who were curious enough to read the financial situations of SIF (Financial Investment Company) Moldova after the first seven months of the year had a big surprise. The financial investment company’s profit dropped from the 252 billion ROL registered after the first six months, to 140 billion ROL at the end of the seventh, accounting for a 45% slump in just one month.

Investors are concerned with the drop in profit as H1 gains, including dividends received by the SIF, account for most of the yearly profit of any financial investment company.

The respective financial situations were not explained in any way and brokers and analysts were left guessing: other lawsuits lost by SIF for the loans guaranteed by the former FPP (Private Ownership Fund), losses recorded in advance following a possible subscription to the bidding for Sidex shares or forced execution for the lost lawsuits. SIF Moldova management could not be reached for comment, but analysts agreed on the most likely explanation. “SIF Moldova registered a drop in profit approximately equal to the increase in its debts, which probably means that the company has recorded some debts associated with certain legal actions,” commented Nicolae Pascu, an analyst with SSIF Broker, one of the largest Romanian brokerages.

The lack of explanations for the profit plunge comes at a time when SIF Moldova is the only financial investment company having promised investors a dividend of 490 ROL/share for next year. Seven-month profit now stands at 270 ROL/share, with no significant growth perspectives until the end of this year.

SIF Moldova shares have been revolving around the 2,500 ROL/share value for the last weeks.
vlad.nicolaescu@zf.ro