Year of Fondul Proprietatea starts on the Stock Exchange
The main trends on the 2011 capital market will be determined by
the listing of Fondul Proprietatea (Property Fund - FP), which will
increase visibility of the Bucharest Stock Exchange in the region
and will force the main market participants (Stock Exchange,
brokers, regulator, as well as investors) to modernise.
The listing of Fondul Proprietatea (FP) has been the most awaited
event on the Stock Exchange every beginning of the year in the past
four years.
Now the FP listing is certain, after the CNVM (National Securities
Commission) approved the listing prospectus at the end of last
year, with the brokers (Raiffeisen Capital&Investment), BRD and
ING Bank) agreeing that manager Franklin Templeton bring the fund
to the Stock Exchange on January 25th.
The listing in the very first month of the year will enable most of
the effects of this event to be felt on the Stock Exchange by the
end of the year. They will be both quantitative effects, such as an
increase in the capitalisation, in the free float (shares of a
public company freely available to the investing public) and in the
value of transactions, as well as in the number of local and
foreign investors.
Just as important are qualitative, indirect effects, with the FP
listing being a trigger for modernising the Bucharest Stock
Exchange (BSE). Whether they want to or not, local brokerage firms
will be forced to make significant changes in their internal
structure (such as the introduction of global accounts), which will
lead to better services for investors, be they local or
foreign.