Lack of foreign investors leads to collapse of top brokers

Foreigners are reluctant to make investments in local shares, due to the international financial turmoil.

The sharpest drop was registered by CA IB Securities, which ranked 16th in June, from 6th in May. ING Bank, May’s top broker, currently ranks 10th, with brokered deals five times lower month-on-month.

Intercapital Invest made top broker in last month’s ranking, having brokered several deals for Policolor paint producer shares. KBC Securities has managed to maintain its second place since last month.

“The main cause for these changes in the ranking of brokers is the lack of foreign investors, who are increasingly less active, both in Romania and on other capital markets,” according to ING Bank Romania’s brokerage division Manager, Florin Ilie.

Investors are currently holding on to their cash or investing in other instruments, he said. “Fixed-income yields are become increasingly attractive, because of higher interest rates. As interest rises, stock markets decline. Europe has an inflationist environment, and everyone is expecting higher interest rates,” Ilie added.