12 February 1998

Rubber business remains in the family (Capital)

An upturn in trading on the over the counter market was seen in the first week of February with daily turnover exceeding 10 billion lei.

Forty five percent of deals involved Danubiana tyre maker in Bucharest, owned by the Tofan Group, the employees and the Muntenia investment fund.. Almost 20 percent of the company are owned by a large number of individuals.

Danubiana joined trading on February 4 with 110,000 shares changing hands in one transaction at 43.709 lei a share. That mean the deal involved a sole seller and a sole buyer: the Tofan Group. Next day, turnover reached almost 10 billion lei, of which four billion were obtained from special transactions. A quarter of that day's turnover was recorded by Romcim cement maker and other 700 million lei were brought in by Romcif, another cement company. Prices of the two cement makers' shares rose by 3.29 and 17.87 percent.

Although this slight pick-up in the market is not constant, it may have a positive influence on investors, tempting them to buy. As a matter of fact, the OTC market is at present the best ground for investments in small companies, mainly because of low prices.

Copyright CAPITAL ROMANIA - business weekly magazine.

No comments: