The listing of Fondul Proprietatea (Property Fund-FP) on aforeign market is causing the first cracks in the relationshipbetween the management of the Bucharest Stock Exchange (BSE), whichdoes not want a new listing, and American group Franklin Templeton,which plans to bring the Fund to London, Warsaw or Vienna, givingassurances the Romanian market would not lose liquidity as aresult.
Since winning the management term in the summer of 2009, FranklinTempleton disclosed plans to list Fondul Proprietatea on a foreignstock exchange after the Bucharest listing, citing the need to makeshares more liquid.
Among the Stock Exchanges announced as potential targets for thedual listing was the London Stock Exchange at first, while latermanagers talked about Warsaw, Vienna or even Hong Kong. Since theFund was listed in Bucharest on January 25th, talks of a secondlisting returned to public attention.
"As far as I am concerned, I don't want another listing of thefund, that is why I insisted that international trading mechanismsbe introduced. Even if it were to happen, statistics show that inthe case of a dual listing, the highest liquidity remains on themarket of origin," said Valentin Ionescu, general manager of theBucharest Stock Exchange at a seminar organised by brokerage firmIntercapital Invest in collaboration with Franklin TempletonInvestment on the FP listing on the BSE.
As of January 25th, the Stock Exchange introduced trading in globalaccounts for FP shares, share loans and short selling for FPshares, which the stock exchange operator wants to extend to allRomanian issuers this spring.
The listing of Fondul Proprietatea generated 662 million RON (155million euros) in transactions in two weeks' time, i.e. more than55% of the stock exchange's overall volume of trading since thebeginning of this year.
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