The structured products destined to high risk investors that Erste Bank listed on the Bucharest Stock Exchange in July have stirred high interest among investors, with deals worth above 14m RON (3.3m euros) being operated with them in just three months since launch.
Half of these transactions were conducted for only one security,
namely Dax Turbo Short (EBDAXTS1), allowing investors to profit
from declines in DAX German index.
Few brokers believed these securities would find buyers on the
domestic market owing to their high complexity level, particularly
in the case of Turbo certificates, but stock market apathy pushed
speculators to try them.
Though the Stock Exchange is dominated by speculators, the
Bucharest market does not hold domestic securities specific of
speculators, yet, such as short transactions offering investors the
possibility of gaining when the market falls.
Raiffeisen, which launched its own certificates on the Stock
Exchange in mid-August, has not managed to attract such high
interest as it listed only index-type certificates, considering
Turbo ones are too complex for domestic investors.