The net value of foreign investments (the gap between purchases and sales) on the Bucharest Stock Exchange rose for the fourth month in a row in July, surging by almost 80% compared to June.
The stronger purchasing by foreign investors, who last month placed over 18 million euros on the stock exchange, gave a boost to the entire market, thus causing it to return to growth. Last month, foreign investors bought stock worth 261 million euros and sold stock worth 7.7 million euros. The BET index of the most important stocks listed on the market climbed by 16% in July. This occurred at a time of renewed growth on the market after several months of corrections.
The effect of stock buying by foreigners was also reflected in the prices of their favourite companies, with banks, oil companies and drug makers experiencing strong growth. In July, Banca Transilvania stock rose by 9%, Petrom”s value increased by 15%, shares in Sicomed Bucharest increased by over 20%, while Petromidia climbed by as much as 29%.
BRD stock resumed trading after a break of more than two months, its price increasing by almost 40% against the last trading price in May. This showed that plenty of orders had been piling up on brokers” desks during the two months in which BRD stock was suspended.
July”s net foreign investments figures were only outstripped by January”s figures, as that month foreigners brought 29 million euros onto the stock exchange, with the market gaining no less than 30% back then.
A high value of foreign investment is quite unusual for the summer months, brokers say, because this is when investment fund managers normally take their holidays.