The investors that had both the courage and the inspiration to invest in shares on RASDAQ early this year got much higher profits than on the Bucharest Stock Exchange, as the interest began to shift towards this market several months ago.
The prices of greatly undervalued shares against the financial results, the fact that a company operates in a sector with good growth prospects, or the significant real estate assets are the main reasons behind several companies' success on the RASDAQ index.
Still, under the circumstances, not even the most bullish of analysts could have predicted a 17,600% yield in just six months as has happened with Atlas Gip Ploiesti (ATGJ) shares. This company, which was probably known to less than 1% of investors on market until several months ago, was discovered in the last four months, like dozens of other companies that added tens of millions of euros to the market value in a matter of days.
The RASDAQ-C index, which gauges the performance of all the companies listed on RASDAQ, increased by 114% since the beginning of the year, yet many shares generated yields of more than 200%.
"The companies on RASDAQ have become attractive the moment their liquidity increased. It wasn't until they reached sufficient liquidity that brokers started recommending them to clients at their right value. Significant increases were generated by large volumes," explained Rares Nilas, BT Securities manager.
Others to have contributed to the increase in the liquidity of the companies were their majority shareholders, who sold stakes on the market to expand the investor base. In general, the shareholders who did this only stood to gain from the move, as the value of their stakes in the companies surged. One such example is Prospectiuni Bucuresti (PRSN), a company that started to grow only after the majority shareholder, businessman Ovidiu Tender, sold several stakes, allowing some foreign investment funds to become shareholders of the company. Prospectiuni shares have therefore increased by 516% since the beginning of the year.
"A very large number of companies increased because they had been greatly undervalued, both in terms of financial results and the assets they own. Still, without liquidity, they could not have grown," Nilas added. Another explanation for the great interest in RASDAQ is that investors have found companies from a series of interesting fields that cannot be found on the Stock Exchange, such as constructions. "I believe the lack of new issuers on the Bucharest Stock Exchange was the main cause for increases lately (...)," Adrian Ceuca, Broker Cluj manager stated.