130m-euro net investments in FP shares from foreign funds

Foreign institutional investors bought a further 6.5% in Fondul Proprietatea (FP) shares since its floatation on the Bourse, on January 25, coming to hold 20,4% in the fund at the end of March, show FP reports.

The net value of foreign funds' investments in FP thus reached some 130m euros, in just ten weeks. By comparison, net foreign investments on the Bourse in 2009 and 2010 stands at around 160m euros.

"This is a positive signal. FP is the most important issuer and foreigners' purchases show there is interest in the fund and in Romania," says Răzvan Paşol, chairman of Intercapital Invest brokerage.

Foreign funds' total exposure to FP shares currently tops 410m euros.
Foreign funds' massive acquisitions did not manage to move the price, which fluctuated within a narrow interval in the last two months, between 0.58 and 0.62 lei/share, with plus/minus 1% variations being very rare.

"The price has not risen as there have been sales from people who received shares as compensation and from those who bought ahead of listing on the OTC market. These sales will decline at a certain moment, but interest will stay high, and then we could also see price increases. I believe it may happen by yearend," Paşol specified.