The listing of state companies could cheer up the Bulgarian stock exchange, though no equity and bond issues are currently in the works, investment bankers contended. The public offering of state energy enterprises, outlined by the government as a short-term measure to temper the economic turmoil, could have a positive effect, bringing foreign investors back to the stage. "The listing of juicy state firms will revitalise the market drawing in foreign investments," said Biliana Valkova, Investment Banking head at local intermediary Benchmark Finance. The bond market is also stagnating over companies' liquidity problems and investment banking will bounce back only after bank loans and interest rates recover and money starts flowing back to businesses, she added. With new emissions at dirty low volumes from last year when the crisis had already filtered into the market and the bulk of major projects switched to a standby mode, managers fear the sector is trapped in a vicious circle as the economic instability and cash-strapped investors are sapping demand for new stocks and bonds, which are in short supply too due to frozen corporate investments. Nevertheless, companies are starting to ponder capital raising options other than bank credits waiting out clearer signs that the crisis is over and scrambling for better price prospects, said Miroslav Stoyanov from Elana Trading, adding the bond market will stay sluggish despite the global stir over the lack of economic security and potential creditors. Still, the state has a key role for propping up the market, which is the case in China whose state companies dominate the global capital scene offering the largest IPOs and bonds this year. Poland follows in China's footsteps making investors flock to its Bogdanka mine in the face of the downturn.
Here is the latest pitch from Wall Street: those troubled assets at the banks could turn out to be gold for you.
AFTER a terrible 2008, in which value fund managers failed to sidestep many of the worst-performing stocks in the market, these managers have been profiting from a bounce in many of the same stocks. Value funds, which focus on stocks selling below their fundamental value, surged 18.3 percent in the second quarter, on average, after losing 36.2 percent in 2008.
NATURAL resources funds have certainly lived up to their reputation for volatility. After an extreme roller-coaster ride in 2008, when commodity prices skyrocketed over the summer, only to plummet in the fall, those prices climbed steadily in the first half of this year.
LIKE a hurricane downgraded to a tropical storm or maybe a tsunami reclassified as a ripple in a pond, the distress that gripped the economy and financial markets has dissipated greatly. That’s what the best performance for stocks in any quarter since 1998 will do for investors’ psyches, no matter how awful things seemed just weeks before.
WASHINGTON — Reacting to the violent swings in oil prices in recent months, federal regulators announced on Tuesday that they were considering new restrictions on “speculative” traders in markets for oil, natural gas and other energy products.