The times we are going through are of uncertainty and it is possible that we will not return to predictability too soon and the way things were moving until recently, according to Chairman of the Bucharest Stock Exchange (BVB) Radu Hanga.
"We are going through times of uncertainty. My personal opinion is that this time of uncertainty will be long. I mean, I don't think we're going to go back to predictability and the way things were moving until recently. We also look with great interest at what is happening in the public square.... We hope that uncertainty will not make investors withdraw. To me, the question is to retire where? The reality is that this is the world in which we live and in which we will live and we will have to face it, to adapt to it. I mean, in a way, we will have to invest the money.
Whether we invest it in the capital market, or in government bonds or bank deposits, we will have to do something with it, taking into account the fact that this uncertainty is a given. The good thing we see happening on the local market is the increase in the number of investors," Radu Hanga said on Thursday at the Financial Year 2025 conference organised by Finmedia.
He added that 10 years ago, when foreign investors were on vacation, our liquidity decreased significantly, showing the dependence of the local market on foreign capital.
"Now we see a significant increase in the number of investors, from 50,000 to over 220,000. This gives us resilience, that is, this makes us have a market that functions independently of the presence or absence of foreign capital. Once again, it's not black and white. We know that things are cyclical and there are times when the appetite of foreign capital to come to a country, regardless of whether it is Romania or any other, is greater or less so. So, it is very important to have this local capital base, which, on the one hand, secures the operation of the markets at times when foreign capital is more defensive, for various reasons, and, secondly, it is important because, somehow, it underlines our positioning as a stock market. That is, we are trying to pivot from positioning the stock market as a source of financing. The stock exchange is not only a source of funding. If I define the stock exchange only as a source of financing, of course yes, the London stock exchange is much more significant, for example, because the level of capital available there is much higher. If I position the local stock exchange as a partner for local companies, which helps them not only by giving them access to capital, but also by giving them visibility, giving them the opportunity to promote themselves on a market that is relevant to them, at this moment we are starting to differentiate ourselves," said Hanga.
Comentează