Erste stock took a nose dive in Vienna, and the evolution was mirrored on the Bucharest bourse, after the Austrian group announced a set of “radical” measures in a bid to reposition the bank in the outlook of upcoming euro area turmoil.
Earlier Monday, Erste said it will partially write down its Romania-related goodwill by EUR700 million pre-tax, reflecting a slower-than-expected economic recovery. The measure is part of a larger package of extraordinary charges which are expected to turn the group’s profit of some EUR700 million for the first nine months into a loss of about EUR920-EUR970 million.
As a result, Erste shares dove 13.29% on the day in Bucharest, to 78 lei (EUR18.12), on a traded value of RON3 million.
Meanwhile, the bourse’s main index BET and composite index BET-C dropped 1.78% and 1.16% respectively.
BET-FI, the index tracking the Proprietatea fund and the five regional investment funds, or SIFs, fell 1.62% on the day, to 16,629.94.
Wider blue-chip tracker BET-XT dropped 1.74%, while energy companies tracker BET-NG fell 1.09% on the day.
Trades unfolded on the Bucharest Stock Exchange Monday amounted to RON35.23 million. The bulk of activity came from deal and main market trades in the Proprietatea fund, which cumulated RON20.32 million.
Proprietatea shares dipped 0.44% on the day, to RON0.4497.
Popular stock included Banca Transilvania (TLV.RO), which fell 4.65%, and OMV Petrom (SNP.RO), which closed flat on the day. (EUR1=RON4.3053)