“Negative news on the debt crisis and the slowdown of economic growth are not a novelty and this has already been included in the price of shares. I think the current corrections are not justified. The volatility of equity markets is induced through transactions, either short-selling or other types,” believes Liviu Giugiumica, one of the most experienced brokers on the Romanian market.
Octavian Dragolea, deputy general manager of IFB Finwest brokerage shares this opinion. “This will be corrected, perhaps next week. There are no conceivable reasons for Germany’s stock exchange to fall by 6%. There are many hedging funds that caused all this commotion.”
But some fund managers prepare for the worse, expecting stock exchanges to end the year below the current levels. “I think we have an over 70% chance of seeing the Bucharest stock exchange end 2011 below the current level. I think we have entered a bear market,” says Marius Olteanu, executive manager of management company SIRA.
(English version by Daniela Stoican; Editing by Radu Bostan)