Rasdaq yield, four times higher than BVB’s

There were clues since last year that companies on Rasdaq would offer investors higher benefits than companies at BVB would. The development of several economic sectors, like constructions and automobile industry, increased investors’ interest in companies operating in these sectors, many of them listed on Rasdaq. “Companies from every sector of the national economy populate Rasdaq,” said BVB’s General Manager, Stere Farmache. Sometimes, the decision whether to invest in a company or not was land that company owned.

BET-C, the index that reflects the price movement of all the companies -except financial investment companies - listed on the BVB regulated market, increased by 36.11 percent in eight months, while Rasdaq-C, the index of companies listed on the Rasdaq market rose by 137.31 percent since the beginning of 2007. Last year, companies listed on Rasdaq offered an average profit of 33.93 percent, compared to those listed on the BVB regulated market, with a 28.49 percent yield.

“After the two stock exchanges merged (Ed. n. - Rasdaq and BVB merged in 2005), companies on Rasdaq became much more visible. We witnessed rising interest in these companies, which translated in prices’ and traded volumes’ increase,” BVB’s General Manager told Business Standard.

Rasdaq’s increased liquidity was one of the elements that appealed to investors. “The higher a share’s liquidity is, the easier it is for an investor to exit. Rising trading volumes lead to more investors,” BT Securities General Manager, Rares Nilas, told Business Standard. Titles listed on BVB had a positive and constant evolution in the last few years, pushing investors to seek for new challenges. They focused on other companies, because shares on BVB were not promising high yields. “Investors focused on companies with growth potential in dynamic sectors or with very good assets, namely land. It was Rasdaq’s rediscovery by investors,” Central European Investments analyst, Dan Voronet, explained for Business Standard. “Rasdaq titles had been heavily under valuated, having less liquidity as a consequence,” said Nilas.