Despite the current total capitalisation of the Stock Exchange revolving around 21 billion euros, the value of stock able to "move" on the market is much smaller, shows a survey conducted by Razvan Pasol, chairman of Intercapital Invest brokerage.
According to Pasol's survey, the total capitalisation of free-float percentages of all stocks listed on the Stock Exchange stands at 5.85 billion euros, accounting for a quarter in the total capitalisation of the BSE or more exactly 27.7%. Free-floats are the stakes that are not owned by significant shareholders, and are considered shares that can be freely traded on the market.
Petrom, the biggest listed company, holds a weight of some 46% in the total capitalisation, while BRD, the second biggest issuer on the market, holds an 18% weight. Overall, the top two listed companies account for almost two thirds of total capitalisation (64%), whereas the top five listed firms register a cumulated weight of more than three quarters of the total (77%), shows Razvan Pasol's research.
"I wanted to find out the value of the total Stock Exchange capitalisation related to the free-float percentages of each listed issuer. More exactly, I wanted to estimate this way, the value of stock that can, at least theoretically, move on the market," specified Razvan Pasol.
In the survey, free-float percentages were considered stakes of below 5% held by investors.
According to Pasol, another interesting indicator is the ratio between the annual value of transactions and the total capitalisation of a stock exchange.
For the Czech, Hungarian and Poland stock exchanges, the indicator ranges between 32.8% (Poland) and 60.9% (Hungary), having an average value of 47% on the three markets, Pasol's survey shows.
In Romania, the ratio stands at 11%, if taking into account the total value of capitalisation, 21 billion euros. However, if the value of capitalisation calculated on the basis of free-float percentages is taken into account, the percentage becomes 40.9%, close to the values posted on neighbouring stock markets, says Razvan Pasol.
"I do not think we can necessarily draw a conclusion from these data, such as whether we are in a better or a worse position than neighbouring stock markets. The situation is sure to change considerably in 3-4-5 years, when companies such as the Property Fund, RomTelecom or BCR come onto the Bourse," considers Pasol. He added the low weight of free-float percentages also accounts for the low level of transactions.
The average traded value has been keeping at about 10 million euros since the beginning of the year, considering there are 66 companies listed on the main market of the Stock Exchange, a number that has hardly changed in the last two years.
Other market analysts maintain the data on the capitalisation of free-float percentages show the situation of the Romanian bourse is not quite solid.
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