On the other hand, the value of SIF investments in state bonds rose threefold year-on-year, to RON 48.2 million (€11.3 mln), at the end January, due to a remarkable rise in state bond yields, registered especially in November and December.
Investments in 2007, the most glorious year for the Bucharest Stock Exchange (BVB), and those last year, reduced by almost half the SIF resources invested in bank deposits. At the end of last year, SIFs had RON 148.5 million (€34.7 mln) in bank deposits, while these amounted to RON 271.7 million (€79.7 mln) in January 2007.
“The drop in bank deposits can be explained case by case, depending on the options of each company. Some made important acquisitions of shares in new companies or in those already exisiting in their portfolios, raising their exposure in terms of some shares, while others contributed to an increase in share capital of already exisiting companies, in order to preserve the proportion of their holdings. Finally, some did both,” said Petre Szel, President of SAI Muntenia Invest, which administers SIF Muntenia.
Closing prices registered at the end of January 2009 marked a 14.0 percent depreciation (SIF Transilvania) to 26.5% (SIF Oltenia).
