Construction companies are worth €1.8 bln on the stock exchange

Construction companies with the highest level of liquidity on the Rasdaq electronic section of the Bucharest Stock Exchange are worth over €1.3 bln, while the market value of Impact and Condmag companies, listed on the BVB’s main market, exceeds €417 mln. The analysis is based on 24 construction issuers with the highest level of liquidity, listed on the BVB and Rasdaq markets.

Brokers say that construction companies will continue to soar in the near future, as the construction market is recording a strong development. “It is a promising field, and we will observe significant increases in the future, on the long and medium term. Companies likely to resist and be productive are the ones using modern technologies, which have made significant investments to be able to compete on the market,” said the Deputy General Manager of the SSIF Broker financial investment services company, Adrian Ceuca.

The highest market value, of €313.8 mln, is that of Impact Developer&Contractor, listed on the BVB. The company’s value surged by 120 percent in the past 12 months. Impact Developer&Contractor competes with Rasdaq constructor Comnord Bucuresti, controlled by businessman Sorin Creteanu. In 2007 alone, Comnord’s value increased tenfold, to a current €305 mln, according to the 10 September 2007 quotation.

The Rasdaq market brought in the highest yields and construction companies were among investors’ main targets and registered spectacular increases.

Shares of Prefab Bucuresti, construction material producer, increased by 241.6 percent since the beginning of this year. The company’s value on the stock exchange currently amounts to €160.2 mln.

The Imotrust Arad real estate developer is worth €120 mln, ranking fifth among top market values of construction companies, after its shares surged ten times since the beginning of 2007. The company announced in the first half of 2007 it intended to invest €10.5 mln in building two industrial parks and a residential complex in Arad County.

The value of Atlas G.I.P. shares, the leading logging and perforating company in Romania, increased by 10.726 percent from last year’s end, and the company’s market value reached €21.6 mln, according to the 10 September 2007 quotation.

Ceramica Iasi, construction material producer, recently taken over by the U.S. Advent International investment fund, saw the value of its shares increasing by 345 percent and its market value is now close to €100 mln.