Property Fund shares lose one third of value in two months

The shares of Property Fund (Fondul Proprietatea) are currently trading at 35% of their face value, on the segment of classifieds, down over 30% from the 0.5 RON peak reached in March, according to information ZF got from persons involved in transactions. As the Fund is not listed for the time being, stock transactions are carried through the Central Depositary, based on agreements between sellers and buyers. Stock supply and demand meet through classified ads. Though they are not traded on the Bucharest Stock Exchange, the Fund's shares have been hurt by international stock market turmoil, in the context where entities involved in transactions are largely foreign investment funds and sophisticated investors closely watching the trend of the crisis. "After having soared in the past year, the Fund's shares have registered a correction in the past weeks. At present, transactions are sealed at a price of 0.34-0.35 RON/share. The reason behind the correction is not related to the situation of the Fund, but particularly to the very high volatility on the domestic and international stock markets," said Adrian Lupsan, a deputy general manager with Intercapital Invest brokerage.