English Section

13 ianuarie 2020

OVER THE LAST THREE YEARSNearly 270% rise for shares of Turbomecanica

• Alin Brendea, Prime Transaction: "The favorable context of the defense industry in recent years has also had a positive influence on the financial results of Turbomecanica"

• Adrian Simionescu, Vienna Investment Trust: "Before the stock price started to rise, the Turbomechanica shares were heavily undervalued"

• "The outlook for the stock price going up is still good, so we expect positive results in 2020", says Adrian Simionescu

Shares of Turbomechanica aircraft component manufacturer (TBM) have risen spectacularly over the last three years. Between December 30, 2016 and December 30, 2019, the share price of TBM rose from 0.0968 lei to 0.355 lei, meaning a rise of 266.7%, way higher than that of the indices on the Bucharest Stock Exchange (BSE). The BET Plus index only rose 41.56% over that period.

"2019 - the first year in which our industry did not perform well"

Reporter: What were the end of 2019 and the beginning of 2020 like for businessmen?

Cristian Pârvan: The business sector feels that it must remain optimistic, considering last year's economic growth, of over 4%. This evolution is essentially a synopsis of the performance of the Romanian economy, even though we are still far from the results of economies similar to ours, namely Poland, the Czech Republic, Hungary, which have clearly higher performance ratios than we do. But, all in all, in spite of all the turbulence and challenges, our economy has found solutions to do well. Regarding the sources of that economic growth, it is obvious that 2019 saw a downward trend in terms of the participation of the industry in this performance. It is the first year in which the industry did not perform well, and stopped being an essential contributor, in terms of growth, to the evolution of the GDP.

One area where Government Emergency Ordinance 114/2018 had a positive effect was in the constructions sector. The figure with which construction increased in 2019 compared to 2018 shows that this stimulus was needed in the construction industry. A side effect was that a number of construction workers returned home, because the wages here were high enough to no longer justify their working abroad.

ANALYSTS: "The BSE will not remain unaffected by the conflicts in the Middle East, but it will be late to react"

Our capital market will not remain unaffected by conflicts in the Middle East, but will most likely react late, being less exposed to international events than other, more developed foreign markets, analysts consulted by BURSA newspaper said. They stressed that, however, in the case of major events, the shares listed on the Bucharest Stock Exchange (BVB) will be affected, but not by the events themselves, but by their reaction to the evolution of other financial markets.

2020 - a special strategic thinking effort

The year 2020 will be marked by three events with a major impact on Romania's development: The European Union will adopt the new 2021-2027 financial perspective and we expect our country to be allocated a volume of European funds at least as high as the one it got in the 2014-2020 financial perspective; the political parties in Romania will finalize their electoral programs for both local and parliamentary elections, with a 2024 time frame; the Romanian Government will finalize its priority objectives for the negotiation with the European Commission of the new Partnership Agreement for the period 2021-2027, including the requirements that we will have to meet for accessing European funds.

The Federal Reserve, between "the deep state" and the "economically clueless state"

The association between the Federal Reserve and the "deep state" fighting President Donald Trump was only a matter of time. Probably the only question is why so much time has passed from the first allegations made by Trump against the Federal Reserve leadership to explicit statements by a member of the administration.

1 Euro5.0860

1 Fr. elveţian5.4550

BNR

1 Liră sterlină5.7723

BNR

1 Dolar SUA4.4037

BNR

1 Gram Aur567.2995

BET22865.87

BET FI85906.21

BET NG1710.45

Santa came along with gifts and brought joy to children at the "BURSA" offices

Just like he does every year, for a few hours, this Saturday, Santa Claus stopped by at BURSA, with his bag full of sweets and toys. Around 150 children in the Popa Tatu area were delighted to see him again and to tell him poems and songs,...

Optimistic budget for 2020

Economic growth of 4.1%, budget deficit of 3.59%, average inflation rate of 3.1% - these are the main macro-economic indicators that the budget for next year was built around, according to the Report on the macroeconomic situation for the year...

MIRCEA URSACHE:"There is no confidence in the management of the ASF"

• (Interview with Mircea Ursache, former president of ASF)

NEGATIVE RATING OUTLOOKStandard & Poor's says that we are going downhill

• Even though S&P expects that next year we will begin a process of significant fiscal consolidation, the rigid structure of the budget and the volatility of the political environment represent risks to this hypothesis

WITH LOW LIQUIDITY AND NO DIVIDEND ALLOCATIONRopharma shares are down 23% over the last two years

• Marcel Murgoci, Estinvest: "Looking at it strictly from the point of view of the Price to Book Value indicator, we can say that the RPH stock is correctly valued"

The leu can no longer escape the consequences of irresponsible policies

In October 2016, the governor of the NBR was saying that "throughout my career I have not seen a better macroeconomic situation for Romania", which was accompanied by "the greatest risks".

IN THE LAST NEAR TWO YEARS17% rise for Biofarm shares

Biofarm (BIO) shares have seen a rather tepid evolution over the last nearly two years. The Bucharest-based drug maker saw a rise of 16.78%, from the beginning of last year until the 4th of December 2019, below that of major companies listed on...

The logging industry, a cross-section

Denied, minimized, covered-up, the looting of the domestic forests comes to light in all its hideousness. What the media and regular folks have reported / found is now confirmed at the highest level. The accusations are serious, and the fact that...

The judicial system, Orban's pain in the neck

The judicial system seems to be again in the spotlight, these days have been marked by a series of actions in the field, with an impact both on the activity of the magistrates and on the political scene.

ANALYSTSIn 2050, there will be no one left to pay the public pensions

• Dochia: "The pressure on the pension system is very high and the decision makers need to be very careful when it comes to their decisions"

A mandate for reform

At the time I wrote these lines, five hours before the polls closed, Klaus Iohannis had a clear victory. No surprise! All indicators, throughout the day, anticipated a difference of at least 20% between Klaus Iohannis and his counter-candidate:...

Lies at the last minute of the presidential campaign

• The writhing of the candidate without theoretical odds

The BSE - a stock exchange that is looking for its North

November 20, 1995 - The first trading session is held on the Bucharest Stock Exchange (BSE), after, in April, the BSE was re-established as an institution of public interest.

The BURSA awards - a triumph

Style and elegance, brightness and ostentation, light and color, music and dancing, prizes and surprises - those were some of the ingredients of the BURSA Gala on Thursday, November 14th, which, held at the majestic Palace of Parliament, marked...

Arithmetic is on Iohannis' side, even though he is a physics teacher

The first round of the presidential election showed once again what we have known for 30 years: nothing changes! Logic says that as long as we had no debates between the main candidates, it follows that people didn't cast their votes based on...

The global economy - on the edge of the precipice

• Adrian Vasilescu: "The German press talks about the end of abundance"

Microscopic popes Ponta and Dăncilă (and maybe others, too)

V.V. Ponta and V.V. Dăncilă have eliminated their traitors from the party (the few members ProRomania and the PSD who voted in support of the appointment of the Orban Cabinet). They are outright stating that they do not support the freedom of...

Will the future government succeed in even publishing the budget execution on time?

The budget execution of the first nine months represented a pleasant surprise: the scale of the disaster was published after a delay of only a few days.

The reality of prostitution in television

In the case of Realitatea TV I do not feel that I need to do research, I am just going to write like any TV viewer would write - if it were that easy on most articles, journalism wouldn't matter much.

Electrica invites its shareholders to subscribe in the SPO

Societatea Energetică Electrica S.A. informs the investors and the capital market that the Financial Supervisory Authority approved, through the Decision no. 1311 of 30 October 2019, the Simplified Prospectus regarding the issue of up to 309,869...

Can the Eurozone be saved after it's been "saved" by Mario Draghi?

When I read that "Mario Draghi declared victory in the battle for the euro," in an interview with the Financial Times, I remembered how people used to complete the expression the "victory of socialism" before 1989, by adding...

FOUR DECADES OF ATTEMPTS, ONE COMMON GOALBrexit - the final week

After two years of heated discussions, controversies and high-level resignations, the Brexit saga seems to be nearing the end. The outcome of the UK is decided this week, with laborious discussions being scheduled between the British officials...

The PSD-dominated Olt river floods Victoria Palace

Apparently, Viorica Dăncilă changed her mind on expelling Paul Stănescu, the leader of one of the most powerful county organizations of the Social democrats: "I consider all my colleagues act on good faith. They will prove that they were...

The NBR's ultimate monetary policy: prayer

When you've painted yourself into the corner, by ignoring the mistakes of monetary policy, yours and those of others, the only "effective" measure remains prayer.

Tokyo stock exchange "courting" Aramco for the international IPO

Tokyo Stock Exchange wants to persuade Saudi oil giant Aramco to list its shares on this market as part of its international component of its future IPO.

THE PUBLIC DEBT OF THE UNITED STATES HAS REACHED A NEW RECORD IN THE 2019 FISCAL YEAROne trillion, two trillion, tens of trillions

The US public debt has reached 1 trillion dollars in the fiscal year which ended on September 30 1981, after increasing by about 81 billion compared to the previous year.

The theory of group rape: with citizens being the ones getting raped, as a group

Monica Melencu, mother of Luiza Melencu (victim of Gheorghe Dincă, in the Caracal case), has been fined 5,000 lei for once again refusing to allow the taking of DNA samples, which she has been ordered to do by court ruling; scared by the fine...

IN THE EURIBOR MANIPULATION CASEHSBC escapes a fine of 33.6 million Euros

HSBC Holdings Plc, the biggest banking group, was partially exonerated in a case of manipulation of the Euribor, as the European General Court decided to revoke the fine of 33.6 million Euros levied upon the lender.

Swiss Franc beating the 2015 record

More than four and a half years after the explosion of the Swiss franc, (CHF), after repeated protests by debtors, wide scale debates in the Parliament, concerning draft laws on the matter, promises by politicians and banks that they would...

THE BSE FIGHTING GRAVITYThe Romanian stock market - to be or not to be emerging

NEARING BLACKOUTThe electricity crisis is taking us back to the communist era

We are very near to going back to the way things were in the communist period, when electricity was being cut off voluntarily due to the insufficient supply, specialists in the market are saying in unison.

"A new type of sapiens populates the planet"

• (Interview with Paolo Benanti, professor of technology ethics, the Gregorian Pontifical University)

HOW BIG IS THE PANIC AT THE AMERICAN CENTRAL BANK?The Federal Reserve has lost control of the policy rate

The most important central bank in the world is trying to find out what has happened last week, when interest rates on the repo market reached intraday all time high, of approximately 10%, even though the surplus reserves in the banking system...

The appointment of Kovesi as EU chief-prosecutor is now a matter of mere formality

In spite of - or perhaps because of the opposition of the power in Bucharest, Laura Codruţa Kovesi got the support to become the chief-prosecutor of the European Union (EU).

The expansion of the loan and deposits portfolio - the main benefit of the merger between Patria Bank and Banca Carpatica

• (Interview with Daniela Iliescu, CEO of Patria Bank)

"Without Government Emergency Ordinance 114, the investment decisions for the Black Sea would have already been made"

DEPUTY VIRGIL POPESCU, VICE-PRESIDENT OF THE INDUSTRIES AND SERVICES COMMISSION:"Without Government Emergency Ordinance 114, the investment decisions for the Black Sea would have already been made"

The lack of legislative predictability and instability have caused investors not to make investment decisions concerning the extraction of natural gas in the Black Sea, says Virgil Popescu, vice-president of the Commission for Industries and...