Stock Exchange in 2009: Profits halved by crisis
The cumulated profits of 63 of 69 companies listed on the
Bucharest Stock Exchange halved in 2009, the worst year for the
Romanian economy in the last decade. Still, revenues and turnovers
of companies did quite well, going down by merely 13% overall to
41.2 billion RON (9.7 billion euros), compared with the 7.2% GDP
plunge.
Listed companies cut their losses ten times in the last quarter,
and those in the industry showed signs of a rebound, posting rising
turnover. Cumulated revenues and turnover derived by 63 companies
listed on the Stock Exchange fell by 28% in the last three months
of 2009 against 2008, to 13.5bn RON (3.17bn euros), amid a 6.6%
economic decline. However, the overall losses of BSE listed
companies went down ten times in the fourth quarter, to 66.7m RON
(15.6m euros), in the wake of a more stable exchange rate and
expense cutting steps taken by managers. Almost one third of the
surveyed 63 companies cut their losses in the fourth quarter, and
13 of them managed to return to profit. "Listed companies' figures
will be ever more surprising starting the first quarter, and
attention will focus on companies with cyclical activity. In terms
of Stock Exchange investments, in this phase of the stock market
cycle, at least theoretically, the fields recommended for
investments are tourism, oil/gas and real estate (...)," says
Andreea Gheorghe, head of the research department of Intercapital
Invest brokerage.