New reasons for stock market crash
The collapse of the government led by Emil Boc will most likely send shockwaves through the Bucharest Stock Exchange.
Specialists interviewed by Wall-Street said this would put the market in a stand-by mode as traders will be hesitant to commit more money to the market, which will translate into narrow liquidity and sideways trading.
“Anything is possible now”, said Adi Lupsan, deputy director at Intercapital Invest.
“Despite the political instability, we may see the stock market moving up, in the attempt to patch up the difference between the Romanian and foreign markets. But BSE has already factored the collapse of the government in the stock prices”, said Lupsan.
Before the motion of censure was brought before the Parliament, stock prices were moving sideways, as the liquidity was narrow.
Specialists interviewed by Wall-Street said this would put the market in a stand-by mode as traders will be hesitant to commit more money to the market, which will translate into narrow liquidity and sideways trading.
“Anything is possible now”, said Adi Lupsan, deputy director at Intercapital Invest.
“Despite the political instability, we may see the stock market moving up, in the attempt to patch up the difference between the Romanian and foreign markets. But BSE has already factored the collapse of the government in the stock prices”, said Lupsan.
Before the motion of censure was brought before the Parliament, stock prices were moving sideways, as the liquidity was narrow.