Bucharest Stock Exchange loses €770 million

Most affected shares were financial ones. Shares of European financial institutions dropped as an increasing number of lenders experienced problems due to lack of performance on the US loan market.

As of 25 July, when corrections on the Bucharest Stock Exchange (BVB) started to increase, listed companies lost €4.046 billion, with financial investment companies (SIFs) alone losing €855 million.

“News from abroad is not favorable. The American market continues to be affected by problems on the loan market. Some companies have posted unfavorable financial results, which has lead to more significant corrections. Anyway, at the moment we are not talking about funds leaving the Romanian market. Investors have reacted emotionally,” said Mihai Chisu, Egnatia Securities broker.

At the end of yesterday’s session, the market capitalization dropped by more than €770 million, considering the fact that BRD (the second-largest bank in Romania) lost €200 million of its market value and Petrom (the most important oil company in Romania) lost €162 million.

Problems on foreign financial markets have increased lately and all international stock exchanges are registering significant corrections. “Things should settle down internally in the coming days, but the uncertain situation seems to be continuing abroad, which will again affect the Bucharest Stock Exchange, exposed to foreign investors,” said Florin Dolea, General Manager of CA IB Asset Management.

Major losses
As of 25 July, when corrections on the Bucharest Stock Exchange (BVB) started to increase, listed companies lost €4.046 billion, with financial investment companies (SIFs) alone losing €855 million.