The Romanian Investor Relations Association (ARIR) presents the main conclusions of capital market professionals present at ARIR’s the monthly debate ”Market Sentiment”. The guests discussed about the stock market long-term growth trends, the appetite of investors for new transactions and the second quarter results.
Răzvan Raț, Deputy CEO, BRK Financial Group:
“Compared to last year, we notice growing interest of investors for new companies on the Romanian capital market. In the last three to four years, bank deposits have constantly grown and we are at a time where excess liquidity dominates. Thus, investment alternatives are necessary and new companies are expected on the Stock Exchange. I am glad that the entrepreneurs are analysing this financing option more and more – other than money, the Stock Exchange also contributes to the promotion of the business, increasing visibility and is created a closer relationship with the customer who can become future investors.”
Zuzanna Kurek, Partner, Cornerstone Communications:
”The entrepreneurs are now interested in raising capital for two reasons: to ensure financial stability in case of a financial crisis that can result from the health crisis, and to ensure sufficient liquidity to guarantee the continuity of the business. We see a higher interest in financing through issuing shares among entrepreneurs to the detriment of bonds because equity financing does not have to be repaid at maturity. From a sector perspective, we can observe an increasing interest of tech and agricultural companies. If we concentrate our efforts and in the following 2 or 3 years we bring on the stock exchange one player for each sector, even from the top 5, we will change the perception in the sector and we will have more listings.”
Cristian Popa, CFA, Member of the Board, NBR:
”Bank loan and investment capital from the stock market are complementary, they work together very well and the monetary policy transmission mechanism works better when you have a developed stock market, because it transmits the capital faster in the economy. Loans, together with investment capital that the listed companies attract, make a whole. Together they develop and finance the economy, the companies and the entrepreneurs develop their ideas, they put capital to work. I think that it is important to have this perspective that financial markets work good together.”
Daniela Șerban, ARIR President & Co-Founder:
”The capital market can be a powerful engine for economic growth in Romania through listings on the Stock Exchange. Lately there has been a lot of emphasis on financial support from the state or on granting bank loans and I think it is time to show the importance of financing sources from the capital market.”