The officials of BRD and Groupe Societe Generale, BRD main shareholder, claim that BRD shares will rally after the 60% drop registered over the last 2 months.
"Trading prices have slumped lately as compared to BRD shares' real value. As I used to say, on a shallow stock exchange market, where BRD shares stand for 50% of the capitalisation and which has few sale orders, those who make the games are only 215 of BRD's 5,500 employees and other BRD pensioners as well as few brokers.
I think the major players will come out soon and BRD shares will rally up to their real price or even above it," Bogdan Baltazar said.
BRD shares dropped to 13,100 lei/share, down from 30,000 lei/share, after BRD employees had been given the right to sell the shares they had bought at a much lower price back in 1999.
Philippe Citerne, Group Societe Generale General Manager, considers that BRD shares drop is linked with the Romanian capital market, the low liquidity and, last but not least, with "the lack of strategic investors able to revive it" (the Romanian capital market, i.e.)
"Speaking from experience, I advise shareholders not to go selling their shares. When Societe Generale decided to go public, it was just before the 1987 crash and the opening price was quite below the shares' selling price, on the first trading day.
Those like us, who decided to keep the shares, were eventually rewarded. Societe Genarale shares have increased four times since then," Philippe Citerne says.
Societe Generale is satisfied with the business it began two years ago, when it took over the main stake in the Romanian bank and is interested to expand in other fields, such as mutual funds, insurance and factoring.
"After the first results, Societe Generale is very much satisfied with this investment. Though the economic background maintains difficult, the bank made headway in 1999 and especially in 2000.
We are interested in the Romanian market and, consequently, we will get involved in the mutual funds industry, we will find a way to develop the relationship with the insurance company Commercial Union and, moreover, we will promote factoring," Philippe Citerne said on Tuesday.
"Our ambitious goal is that BRD, with Groupe Societe Generale support and with an active contribution to the economic development, should develop ties with both the corporate and individual clients by developing the products and services range and improving their quality," he added.
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