Whoever could predict at the beginning of the year that Fondul Proprietatea (FP.RO) would start its own stock buyback program and that Hidroelectrica would exit insolvency would have gained more than 30%.
Fondul Proprietatea shares, which account for about 40% of the traded volume of the stock market in Bucharest rose 24% in the first eight months of the year. Along with the dividend from last year’s profit paid to shareholders, this means a 31.3% yield, much better than the overall performance of the market.
After being ignored for a number of years because of the decline in activity in their sector, some construction companies returned to the spotlight because of investor interest in a takeover or a significant stake.
Whoever would have seen Impact Developer&Contractor (IMP.RO), which had posted significant losses in previous years, would change its majority shareholder could have gained 70% in the first eight months of the year. Businessman Gheorghe Iaciu took over the company and he now has to conduct a mandatory tender offer within two months.
One could have also gained almost as much from Transilvania Constructii (COTR.RO) shares, 63%, where regional investment fund SIF Banat-Crisana (SIF1.RO) run by Dragos Bilteanu, bought the controlling interests from the family of businessman Mircea Timofte.
Such deals were hard to anticipate at the beginning of the year and few stock market investors took advantage of the rise in construction sector stocks.
Another good performer was pharmaceutical producer Biofarm Bucuresti (BIO.RO), whose yield was 33.3% including dividends. The growth comes after the company continued to post rising revenue and profit, and the SIFs consolidated their position as shareholders of the company by buying shares in it almost every week. The increase comes after three years during which Biofarm hardly made any progress at all.
Drugmaker Antibiotice Iasi (ATB.RO) rose by 21% this year, higher than the entire market, as investors expect it to continue developing exports and the government to release funds to reduce payment terms, which are now higher than 300 days.
SIF Oltenia (SIF5.RO)’s yield, 18%, was significant too. It managed to earn investors’ trust by lower management costs than the other SIFs and posted a hefty profit this year without reducing the value of its assets.
Its net profit in the first eight months reached 98.7 million lei (EUR22 million) and its assets increased by 6.8% to RON1.5 billion after the first seven months.
OMV Petrom (SNP.RO) shares have been rather flat this year, and the yield stood at 8.1% dividends included, but brokers believe they have potential.
“I think Petrom shares are interesting and undervalued at the moment. I would also bet on Fondul Proprietatea, which is conducting that share buyback program,” says Adrian Manaila, owner of brokerage firm Eldainvest based in Galati (SE Romania.)
“I wouldn’t venture to provide a forecast about banks, because lending is rather bad and banks are still licking their wounds. It’s very hard to get a loan nowadays so I think banks still have to struggle. There are some strange moves with SIFs and things are unclear for the time being.”
Brokers say that except for the situation in Syria, the data and state of the economy support the growth the Bucharest Stock Exchange, but the impact of the conflict is hard to assess. (EUR1=RON4.4367)
(English version by Loredana Fratila-Cristescu)
Stock market yield ranking in the first eight months and stock trend in August*
|
Company (symbol) |
Price on Aug 31, 2013 (lei) |
Price on Dec 31, 2012 (lei) |
Price trend |
Dividend yield |
Eight month total yield |
Deals (mln. lei) |
August trend |
|
Uamt Oradea (UAM.RO) |
0.839 |
0.4433 |
89.3% |
0.0% |
89.3% |
0.33 |
29.0% |
|
Cemacon Cluj-Napoca (CEON.RO) |
0.0366 |
0.0204 |
79.4% |
0.0% |
79.4% |
5.28 |
-6.9% |
|
Electroarges Curtea de Arges (ELGS.RO) |
0.705 |
0.3981 |
77.1% |
0.0% |
77.1% |
2.82 |
10.9% |
|
Impact Developer & Contractor (IMP.RO) |
0.1952 |
0.115 |
69.7% |
0.0% |
69.7% |
15.59 |
19.2% |
|
Transilvania Constructii Cluj (COTR.RO) |
47.21 |
29.69 |
59.0% |
4.0% |
63.0% |
15.01 |
37.6% |
|
Prefab Bucuresti (PREH.RO) |
2.3 |
1.451 |
58.5% |
0.0% |
58.5% |
0.42 |
4.6% |
|
Rompetrol Well Services (PTR.RO) |
0.47 |
0.3249 |
44.7% |
8.9% |
53.6% |
2.38 |
17.5% |
|
Conted Dorohoi (CNTE.RO) |
78.8 |
59.65 |
32.1% |
16.4% |
48.5% |
0.52 |
10.9% |
|
Banca Carpatica Sibiu (BCC.RO) |
0.0564 |
0.0392 |
43.9% |
0.0% |
43.9% |
12.82 |
5.8% |
|
Rompetrol Rafinare Constanta (RRC.RO) |
0.0453 |
0.0315 |
43.8% |
0.0% |
43.8% |
2.63 |
5.4% |
|
COMCM Constanta (CMCM.RO) |
0.17 |
0.119 |
42.9% |
0.0% |
42.9% |
2.76 |
-15.0% |
|
STK Emergent (STK.RO) |
43.78 |
38 |
15.2% |
23.7% |
38.9% |
0.92 |
6.2% |
|
Biofarm Bucuresti (BCM.RO) |
0.265 |
0.2085 |
27.1% |
6.2% |
33.3% |
15.57 |
5.2% |
|
Fondul Proprietatea (FP.RO) |
0.681 |
0.5495 |
23.9% |
7.4% |
31.3% |
2.217.73 |
4.9% |
|
Altur Slatina (ALT.RO) |
0.038 |
0.0295 |
28.8% |
0.0% |
28.8% |
1.19 |
2.7% |
|
Mecanica Ceahlau (MECF.RO) |
0.155 |
0.127 |
22.1% |
4.7% |
26.8% |
1.27 |
0.1% |
|
Contor Group Arad (CGC.RO) |
0.0303 |
0.024 |
26.3% |
0.0% |
26.3% |
0.46 |
-6.5% |
|
Bursa de Valori Bucuresti (BVB.RO) |
24 |
20 |
20.0% |
5.6% |
25.6% |
42.08 |
20.1% |
|
Zentiva Bucuresti (SCD.RO) |
0.9 |
0.775 |
16.1% |
6.2% |
22.3% |
1.83 |
8.4% |
|
Antibiotice Iasi (ATB.RO) |
0.456 |
0.3764 |
21.2% |
0.0% |
21.2% |
12.62 |
-2.7% |
|
Electromagnetica Bucuresti (ELMA.RO) |
0.2242 |
0.1889 |
18.7% |
2.1% |
20.8% |
6.02 |
15.0% |
|
Artego Targu Jiu (ARTE.RO) |
9.5 |
8.5 |
11.8% |
7.0% |
18.8% |
5.42 |
11.8% |
|
SIF Oltenia (SIF5.RO) |
1.53 |
1.403 |
9.1% |
9.3% |
18.4% |
186.96 |
6.8% |
|
Aerostar Bacau (ARS.RO) |
1.6 |
1.437 |
11.3% |
6.3% |
17.6% |
4.83 |
-3.6% |
|
Farmaceutica Remedia Deva (RMAH.RO) |
0.29 |
0.2652 |
9.4% |
7.5% |
16.9% |
0.28 |
-2.7% |
|
Prodplast Bucuresti (PPL.RO) |
1.265 |
1.09 |
16.1% |
0.0% |
16.1% |
5.49 |
8.1% |
|
Banca Transilvania (TLV.RO) |
1.44 |
1.27 |
13.4% |
0.0% |
13.4% |
282.60 |
16.1% |
|
Broker Cluj (BRK.RO) |
0.1288 |
0.1139 |
13.1% |
0.0% |
13.1% |
15.43 |
3.0% |
|
Turbomecanica Bucuresti (TBM.RO) |
0.0334 |
0.0297 |
12.5% |
0.0% |
12.5% |
0.80 |
7.4% |
|
OMV Petrom (SNP.RO) |
0.435 |
0.4281 |
1.6% |
6.5% |
8.1% |
675.47 |
2.6% |
|
VES Sighisoara (VESY.RO) |
0.0334 |
0.0309 |
8.1% |
0.0% |
8.1% |
0.12 |
3.1% |
|
Transelectrica Bucuresti (TEL.RO) |
13.3 |
12.69 |
4.8% |
3.2% |
8.0% |
61.30 |
2.4% |
|
Vrancart Adjud (VNC.RO) |
0.0714 |
0.067 |
6.6% |
0.0% |
6.6% |
1.79 |
-1.5% |
|
SIF Muntenia (SIF4.RO) |
0.6835 |
0.77 |
-11.2% |
17.4% |
6.2% |
93.98 |
7.2% |
|
SIF Transilvania (SIF3.RO) |
0.579 |
0.7115 |
-18.6% |
24.6% |
6.0% |
236.81 |
7.3% |
|
Condmag Brasov (COMI.RO) |
0.0916 |
0.087 |
5.3% |
0.0% |
5.3% |
10.22 |
-3.6% |
|
Vae Apcarom Buzau (APC.RO) |
0.7055 |
0.735 |
-4.0% |
9.3% |
5.3% |
0.16 |
3.8% |
|
BRD Societe Generale (BRD.RO) |
8.5 |
8.11 |
4.8% |
0.0% |
4.8% |
331.07 |
8.3% |
|
Erste Bank (EBS.RO) |
109.2 |
105.3 |
3.7% |
0.0% |
3.7% |
292.04 |
9.2% |
|
Amonil Slobozia (AMO.RO) |
0.0068 |
0.0066 |
3.0% |
0.0% |
3.0% |
0.46 |
3.0% |
|
SIF Moldova (SIF2.RO) |
1.231 |
1.45 |
-15.1% |
16.6% |
1.5% |
207.49 |
4.3% |
|
Turism Felix Baile Felix (TUFE.RO) |
0.151 |
0.1525 |
-1.0% |
2.0% |
1.0% |
0.51 |
0.7% |
|
Compa Sibiu (CMP.RO) |
0.534 |
0.55 |
-2.9% |
0.0% |
-2.9% |
6.80 |
2.5% |
|
THR Marea Neagra (EFO.RO) |
0.0574 |
0.0615 |
-6.7% |
2.9% |
-3.8% |
1.11 |
4.7% |
|
Alumil Rom Industry Bucuresti (ALU.RO) |
1.089 |
1.136 |
-4.1% |
0.0% |
-4.1% |
0.47 |
6.8% |
|
Transgaz Medias (TGN.RO) |
186.7 |
218 |
-14.4% |
9.8% |
-4.6% |
152.55 |
0.7% |
|
iFond Financial (IFR.RO) |
128 |
134.95 |
-5.2% |
0.0% |
-5.2% |
2.41 |
5.8% |
|
Stirom Bucuresti (STIB.RO) |
4.22 |
4.5 |
-6.2% |
0.0% |
-6.2% |
0.74 |
5.5% |
|
Uztel Ploiesti (UZT.RO) |
2.11 |
2.25 |
-6.2% |
0.0% |
-6.2% |
0.44 |
0.5% |
|
TMK Artrom Slatina (ART.RO) |
1.231 |
1.335 |
-7.8% |
0.0% |
-7.8% |
0.57 |
-1.5% |
|
Mefin Sinaia (MEF.RO) |
1.41 |
1.58 |
-10.8% |
0.0% |
-10.8% |
0.37 |
-26.6% |
|
SIF Banat-Crisana (SIF1.RO) |
1.05 |
1.213 |
-13.4% |
0.0% |
-13.4% |
142.92 |
1.9% |
|
Socep Constanta (SOCP.RO) |
0.1787 |
0.212 |
-15.7% |
0.9% |
-14.8% |
1.22 |
-0.7% |
|
Carbochim Cluj-Napoca (CBC.RO) |
6.715 |
8.2 |
-18.1% |
0.0% |
-18.1% |
0.11 |
-15.0% |
|
Titan Bucuresti (MPN.RO) |
0.24 |
0.294 |
-18.4% |
0.0% |
-18.4% |
0.33 |
-20.8% |
|
Electroputere Craiova (EPT.RO) |
0.0128 |
0.016 |
-20.0% |
0.0% |
-20.0% |
0.50 |
-4.5% |
|
Teraplast Bistrita (TRP.RO) |
0.162 |
0.206 |
-21.4% |
0.0% |
-21.4% |
0.44 |
1.3% |
|
Oil Terminal Constanta (OIL.RO) |
0.125 |
0.16 |
-21.9% |
0.5% |
-21.4% |
0.59 |
-3.1% |
|
Dafora Medias (DAFR.RO) |
0.026 |
0.0333 |
-21.9% |
0.0% |
-21.9% |
5.75 |
-2.3% |
|
Alro Slatina (ALR.RO) |
1.551 |
2 |
-22.5% |
0.0% |
-22.5% |
1.14 |
3.0% |
|
Boromir Prod Buzau (SPCU.RO) |
0.1022 |
0.1364 |
-25.1% |
0.0% |
-25.1% |
0.71 |
-12.4% |
|
Santierul Naval Orsova (SNO.RO) |
1.49 |
2 |
-25.5% |
0.0% |
-25.5% |
0.61 |
-0.8% |
|
Romcarbon Buzau (ROCE.RO) |
0.0995 |
0.149 |
-33.2% |
4.1% |
-29.1% |
0.42 |
2.6% |
|
Bermas Suceava (BRM.RO) |
0.97 |
1.5 |
-35.3% |
4.3% |
-31.0% |
0.61 |
0.0% |
|
Ropharma Brasov (RPH.RO) |
0.3685 |
0.67 |
-45.0% |
0.0% |
-45.0% |
9.09 |
-5.3% |
|
iFond Gold (IFG.RO) |
50 |
101.9 |
-50.9% |
0.0% |
-50.9% |
0.38 |
-28.6% |
* Only the shares with a traded volume of at least RON100,000 in the first eight months and at least one transaction in August were taken into account.
Source: KTD Invest