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Most expensive stocks on the Bourse

Autor: Andrei Chirileasa

25.04.2011, 23:45 22

SIF Oltenia (SIF5), Banca Transilvania (TLV) and ZentivaBucureşti (SCD) are currently among the most "expensive" shares onthe Bucharest Stock Exchange in terms of minimum amounts investorshave to spend to buy a stake.

Although a SIF Oltenia share costs about 1.57 lei now, that isas much as one loaf of bread, the minimum amount an investor canspend on SIF5 shares stands at nearly 800 lei.

On the other hand, Transgaz Mediaş (TGN) shares, whose price isthe highest on the BSE (265 lei/each, that is almost as much as theupkeep for a two-room apartment during a winter month) require analmost three times lower investment from investors than SIF5.

How can this paradox be?

The shares listed on the Bucharest Stock Exchange (BSE) aretraded in blocks or minimum stakes that vary from one share toanother. The minimum trading block for most listed companies is 500shares. Therefore an investor may not buy fewer than 500 shares inSIF Oltenia or any other SIFs in one transaction. The same minimumrequirements apply to Banca Transilvania (TLV), Petrom (SNP),Broker Cluj (BRK) and Biofarm Bucureşti (BIO).

Any transaction with such shares on the "regular" market, i.e.the market they are officially quoted on has to involve a multipleof the minimum trading block. Stakes below the minimum tradingblock may be traded on the BSE but the transactions are conductedon the "odd lot" market where prices are usually lower than on the"regular" market and investors generally may only sell and not buyon this market.

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