On the German bourse's plunge on Tuesday, as a reaction toplummeting Japanese markets, transactions with German DAX-basedturbo long certificates on the BSE, among the most liquidsecurities on the Bourse in the past month, have beensuspended.
Practically, at the moment DAX index dropped by more than 4%at the opening of yesterday's session to less than 6,750 points,set as a barrier for the respective certificates, they weresuspended from trading and the investors that bought suchsecurities on Monday, at prices of over 19.5 lei/each, will recoveronly 7.5 lei/each, equalling the repurchase value calculated bytheir issuer, Erste Bank.
The investors that have bought such long certificates over thelast few days have bet on a rally of international markets andparticularly of the German one, after the plunges caused by theJapanese earthquake.
However, high market volatility makes such bets extremelyrisky.
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