STK Financial: We could see the end of decline on the stock market this week

The Bucharest Stock Exchange (BVB) ended Friday’s session with losses, as bad news kept coming from the United States. Brokers expect further losses this week, the U.S. bailout plan is pending approval.

However, market specialists hope this week’s corrections to end the long lasting trend of losses. “I expect a downward move this week, but it could bring an end to this depreciation trend,” said STK Financial brokerage company’s head of analysis department, Marius Muresan.

BET, the index of the top ten companies in terms of liquidity, dropped by 2.4 percent on Friday, while BET-FI, the index of the five financial investment companies (SIF), declined by 1.8 percent.

STK Emergent’s closed investment fund recovered over 8 percent in four days of last week, after losing over 50 percent of the IPO price in the first transaction session.

The liquidity on BVB’s main market and the electronic Rasdaq market increased by almost 50 percent compared to the previous session, but it remained below €6 million. Brokers say the lack of liquidity is due to uncertainty on the market and the fact investors are waiting a final decision from the U.S. Congress regarding the Paulson bailout plan. Muresan says the uncertainty will persist if the plan is not approved by the U.S. Congress.

The local market, as well as the capital markets in Western Europe, were negatively influenced bankruptcies in the U.S..