Intercapital Invest: Investor fear of acquisitions is obvious

“The fear of investors to make acquisitions is obvious, as the recent sharp decline has made them more reserved in spite of stock prices of many companies being tempting,” said an analyst of Intercapital Invest brokerage company, Andreea Ciobanu, in a recent report.

Acquisitions in the last two days of last week were due to the revival registered on foreign markets, when the Dow Jones index gained as much as 4.5 percent. However, on the Bucharest Stock Exchange (BVB) the expected rebound did not happen on Friday, when the index of financial investment companies (SIF) dropped, according to Intercapital analysts.

European indexes were up on Friday, thus ending a nine-week period of losses, the longest since 2002, according to Bloomberg.

On the local market, SIFs lost as much as 7.7 percent in the past week, while the BET index of the top 10 companies in terms of liquidity lost 5.6 percent.

For the coming week, analysts expect further volatility on BVB, as stock indexes are close to a three-year low. By the end of the week, indexes could stabilize and even return to an upward trend, unless there is really bad news, according to Intercapital Invest.