From greatness to downfall: Bonds surpassed RASDAQ companies in 2009

The bond transaction value was €135.84 million this year, exceeding that of stock transactions of the RASDAQ market for the first time in the past three years.

According to data provided by the Bucharest Stock Exchange (BVB), the share of transactions with RASDAQ issuers made up 10 percent of total transactions on the Stock Exchange in the January-September 2009 period, compared to the bond market that covered 13 percent of total BVB transactions.

“RASDAQ had its moment of glory. Such moments will come again in the future, but it will take some time before we see such spectacular evolutions again. However, this does not mean there are no very good companies,” Mihai Chisu, IFB Finwest broker, said.

In the March-September period, when indexes on the main market posted increases of up to 200 percent, interest for RASDAQ did not rise. Thus, the evolution of the three RASDAQ indexes ranged between -10.3 percent and +10.3 percent in the March-September period.

“When you choose a company, you must take several criteria into consideration, such as profit, profitability, and liquidity. The latter was ignored when increases exceeded 100 percent, but is very important when the market is falling. Now, investors do not want to make the same mistake, and they are avoiding the RASDAQ. But once gains on large and liquid companies are exhausted, they will also opt for other shares,” Chisu added.