Although the declines were small (in six days the BET index lost 2,5%), the set of six consecutive days of corrections are a warning signal for the market.
After a 21% rise since the beginning of the year, increasingly more investors are looking to take profit, fewer and fewer are buying, and rises have stopped on external markets. Under the circumstances, brokers say there are not many reasons for optimism in the short term.
“The correlation of the Bucharest stock exchange with external markets is obvious, with investors awaiting confirmation that the European economy is going back into recession. What I find more worrying is the liquidity decline. Once buyers have stopped, the market starts to decline, there are no high-caliber investors to support it. That is why our correlation to external markets is more related to declines and less to rises,” said Rares Nilas, general manager of BT Securities.
(English version by Daniela Stoican)