8 Iunie 2009
A higher BSE variation band leaves room for excessive price movements
Increasing the variation band at the Bucharest Stock Exchange (BSE) to +/- 40 percent favors excessive price evolutions and market manipulation, declared Darius Cipariu, deputy general manager with Sibex, the derivatives market in the central city of Sibiu, directly affected by this decision, NewsIn informs.
The BSE will push the maximum variation limit from 15 percent to 40 percent starting with June 15 for shares whose performance is measured by BET index of the ten best companies on the market. Bucharest Stock Exchange shareholders agreed upon this measure in December, considering that the 15 percent margin is rather rigid.
Cipariu, however, disagrees. “On very weak markets like the Romanian one, there was no need to encourage such excesses. The current 15 percent limit was just fine. If we had a very liquid market there was no problem in fixing it, but now it is very possible to reach this variation through ten transactions, through rumors or manipulation,” he explained.
According to the project jotted down last year by the BSE management, the variation modification would be done gradually, without surprising investors.
Cipariu added that Sibex can either keep the current variation limits and run the risk of blocking the market or increase limits and diminish the liquidity.
Cipariu, however, disagrees. “On very weak markets like the Romanian one, there was no need to encourage such excesses. The current 15 percent limit was just fine. If we had a very liquid market there was no problem in fixing it, but now it is very possible to reach this variation through ten transactions, through rumors or manipulation,” he explained.
According to the project jotted down last year by the BSE management, the variation modification would be done gradually, without surprising investors.
Cipariu added that Sibex can either keep the current variation limits and run the risk of blocking the market or increase limits and diminish the liquidity.