Brokers: Turnovers To Stay Low

Brokers: Turnovers To Stay Low talked to three market participants about their expectations for trade in the following five days. Here is what they told us:

Tamara Becheva, analyst, Elana Trading

Investors enthusiasm declined dramatically since the launching of Xetra. This is why I do not expect to see anything too interesting this week.

Speculators will not be able to follow intermediaries' actions and this will limit their activity.

The most important event this week is the IPO of Holding Railway Infrastructure. The preceding IPOs were aimed at fund raising, but the market situation is now different.

Petar Vasilev, portfolio manager, Alfa Asset Management

Last week was a very slow one for BSE as most brokers and investors were adapting to the new rules with the introduction of XETRA. I expect trade this week to continue to be sluggish, with more spectators than traders.

The uncertainty is another reason for the slow activity, as there are no indications as to what trend we can expect in the upcoming months. Most analysts think we will see more activity in autumn.

As far as the IPO of Holding Railway Infrastructure is concerned, I think that the price limits set by the company are making it rather unattractive, compared with most other public stocks.

However, as we have seen lately, when investors hear the word “infrastructure”, many of them are buying right away without even looking at numbers. Since that business has become so fashionable, oversubscription isn't unlikely.

Severin Vertigov, portfolio manager, BenchMark Asset Management

Apart from several general meetings of shareholders scheduled this week, investors are expecting the IPO of Holding Railway Infrastructure.

If the stock sells successfully (even at the minimum price limit) this will have a good impact on prices on the positions of the infrastructural companies.

As a whole, this week, I expect to see low turnovers in a +/-2% range from Friday prices.

I expect more activity after the companies post their H1 results and after the EC's report on Bulgaria due in July.

This article is analytical. This is not a recommendation to buy/sell stock.

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