Romanian stock exchange stabilises after Dec. 19 plunge

The main index of the Bucharest Stock Exchange-BET lost less than 2% on December 20, after it had plunged by more than 11% in the day before amid major tax reforms and revision of the pension system announced by the Government. Share prices stabilised in the afternoon. The head of the capital markets department of the Coalition for the Development of Romania (CDR) Cristian Agalopol asked the financial market regulator ASF to investigate all the suspect deals operated on the Bucharest Stock Exchange these days. "Another concern [of us] is that, in general, such initiatives with a significant impact can lead to market manipulation. Our desire is for ASF to investigate today all the transactions that have been made on the stock exchange, because losses of 10%-20% followed by recovery are not healthy at all," Agalopol said on Wednesday, December 20 at a debate organized by the Coalition for Romania’s Development (CDR), the alliance of the largest Romanian and foreign investors in the economy. In related news, the prime minister’s advisor Darius Valcov, who is believed to be the mastermind behind the new tax reform, commented that the market’s reaction was an emotional one and, given the stocks’ plunge on Wednesday, there is an excellent opportunity to buy as prices will recover. As regards the market manipulation, this option is worth being investigated only if the Government eventually abandons the emergency ordinance (including the tax reforms), Valcov added, according to Digi24.ro. editor@romania-insider.com (photo source: Facebook / Bursa de Valori Bucuresti)