Stock Market: Keep on falling…
Since the beginning of the year and until the end of February, the stock market in Romania was down by 19,86%. It was the second biggest loss in the world. Let us see for a moment the list, as I took it from a Greek newspaper (source MSCI):
The 10 biggest losses in stock markets in 2008 worldwide
1. Vietnam -28.15%
2. Romania -19.86%
3. Bulgaria -19.74%
4. Greece -18.94%
5. Turkey -18.22%
6. Croatia -16.93%
7. Portugal -15.90%
8. Germany -14.73%
9. Philippines -14.17%
10. Poland -13.91%
So, the Balkans were crushed! For sure all the markets have just followed the world’s trend, which was aggressively negative the last weeks. Ok, the Romanian market is much more immature and many times smaller than others like the Greek, but still the result was the same. We can say that 5 countries of our area capture the positions between the second and the sixth. Is it something so dramatic? Is it so dangerous? My very small knowledge about this business says that the Romanian market will follow the world’s trend, with a small difference: As Romanians are more vulnerable to sentimental crisis, they almost… enjoy exaggerating! And the exaggeration in Stock Market is the worst possible consultant.
The Market keeps falling (http://www.youtube.com/watch?v=RO93CN10KKo), without anyone to be able to stop it. In some days we will be back to you, with the help of experts. But one thing is for sure: While the Real Estate market of Romania is the most advanced nowadays in the South Eastern Europe, the Stock Market is totally shallow and easy to get drowned in it…
Read something unusual: These guys really surprise me…
http://www.zf.ro/articol_163109/chimopar_sells_land_worth_21m_euros_in_bucharest.html
“…The company wants to sell its land to a real estate developer, which will develop retail space there, and after completion, intends to buy back the land, including the project developed on it or part of it. “The ad is a test to see how much we can get for the land. Many things can happen until the project is completed. We could use our profit, or credits, to buy it”