SIF Transilvania shares (SIF3) were the object of costly transactions on Friday, exceeding €5 million, representing some 22 percent of total Bucharest Stock Exchange (BVB) main market transactions. Moreover, the fate of half of the financial investment company's shares is still being disputed in court. Judges are yet to either uphold or cancel a decision of SIF Transilvania's Board of Directors to double the company's share capital by incorporating profits and distribute free shares. However, one of the companies in SIF Transilvania's portfolio, Cocor SA, appealed the decision. A final court ruling is to be made tomorrow. Brokers say the lack of certainty about SIF3 shares could be the reason for Friday's massive trading. "Investors are buying SIF3 either to reduce potential losses, if the share capital increase is cancelled, or to take advantage of such a verdict," according to the General Manager of brokerage company BT Securities, Rares Nilas.
On Friday, the price of SIF3 shares rose 8.79 percent, to 2.97 lei (€0.94). The trading of these shares was almost suspended, as they were 0.35 percent away from reaching the maximum price variation threshold.
Liquidity ] SIF3 were not the only financial investment company shares massively traded on Friday. Transactions of shares of the five SIFs amounted to 87 percent of BVB's main market liquidity, totaling €23.96 million.
