Erste: Bucharest Stock Exchange, not as cheap as it used to be

The Bucharest Stock Exchange (BVB) is not expensive at all, compared to other bourses from Central and Eastern Europe, said Henning Eßkuchen, director for CEE Equity Research within Erste Group. However, the local stock exchange is not as cheap anymore as it used to be, Eßkuchen added, cited by local Capital.ro. BVB-listed securities are traded at a discount of 14%, whereas investors pay a premium of 17% for equity investments in the region. Confronted with a shock on the big stock exchanges, Romania would not be capable to absorb the impact of the sales wave. However, the BVB has certain advantages, according to Eßkuchen. It has on its platform several companies with a defensive profile, namely companies from the energy sector with dividends that provide investors comfort. editor@romania-insider.com