Less than two years ahead of Romania's integration into the European Union, foreign investors are rushing to buy Romanian stock in the hope of making gains similar to those derived from the countries entering the EU in the first wave of integration. In the first three weeks of the year, foreign investors invested almost 18 million euros on the Bucharest Stock Exchange.
As a result, the average value of net foreign investments on the stock market (purchases minus sales) amounted to 1.2 million euros per trading session for the first three weeks of the year
Between January 1 and 21, foreign investors acquired stock with a total combined value of 2,032 billion ROL (54 million euros), with the value of sales reaching 1,360 billion ROL (36 million euros).
Higher placements by foreign investors added to the powerful growth of quotations on the stock market, which have climbed by over 30% since the beginning of the year.
Brokers say that because foreign investment funds were more active on the market at the start of the year, transactions by Romanian investors were also higher in value. In practice, the proportion of total buy transactions performed by foreign investors in the first part of January - 36% - was similar to that seen in recent years.
"It is possible that many transactions made by Romanians could move around those by foreign investors, and this is why the weight of foreigners in purchase deals is relatively constant. Most Romanian investors are very interested in the stock foreigners buy and many acquire stock for the simple reason that they heard foreigners were buying, too," says Valentin Ionescu, head of operations with CA IB Securities, the stockbrokers of HVB Bank. vad.nicolaescu@zf.ro
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