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Main attractions of the Bucharest Stock Exchange (BVB) in 2015 include Property Fund (Fondul Proprietatea), Transgaz, Transelectrica, OMV Petrom, and also ETF BET Tradeville, Antibiotics, BRDşi BSE, on the main market, while at the alternative trading system (ATS) of the Exchange, shares of world famous companies: E.ON, Bayer, Lufthansa, Commerzbank, JPMorgan, Google, Apple and Facebook, says Ovidiu Dumitrescu, CFA, Deputy General Manager, Tradeville.
“High dividends offered by a number of Romanian companies compared with Western companies, and interest on bank deposits or government bonds is the main attraction of the local market in 2015 and in the future. Other strong arguments for investing in this market are the possible inclusion of BSE in the category of emerging markets, the program of quantitative easing (QE) of the European Central Bank (ECB) and the reasonable prices of listed companies”, said Dumitrescu.
One of the most accessible tools, ETF BET Tradeville investment fund (TVBETETF), replicates the BET structure and invests, therefore, only in local “blue-chip” companies, with a reasonable liquidity provided by the existence of a market maker. “The BET index and hence the price of ETF units should appreciate by 10% in 2015”, he estimated.
Energy companies, at the top of preferences
Among the symbols available to investors, Property Fund (FP) will, very probably be the main attraction in 2015 too, in terms of liquidity and the operations to be developed to meet the objective of reducing the share price discount to NAV below 15%. Price target for FP stands thus around 1 RON, indicating a potential appreciation of almost 15% over the recent closing quotation.
“Two companies that will remain most popular with investors this year are monopolies in the transport of natural gas and electricity Transgaz (TGN) and Transelectrica (TEL), due to very high dividends. For Transelectrica there is a looming gross dividend yield of nearly 13% at the last closing price and for Transgaz, one of over 9%, so the quotations of the two companies can achieve post-crisis highs in the coming months”, says the Tradeville analyst.
In the same utilities sector, E.ON SE (EOAN), available on the BSE’s ATS segment is particularly attractive, being considered undervalued.
“E.ON is one of the largest listed utility companies in the world by revenue, which was seriously affected by a series of negative events in the energy industry, but is pursuing robust programs to adapt to the new environment and has a good chance of recovery. Reuters centralized estimates sees a price target for 2015 of 15 EUR for EOAN, up over 11% compared to the recent closure”.
In the oil industry, the OMV – Petrom (SNP) shares should be irresistible for investors with a longer time horizon and who are not afraid of volatility, given that the difficulties arising from the decline in oil prices are transitory, says Dumitrescu.
“Petrom is the local fuel market, has the largest modern refinery in the country and has very interesting perspectives on the Black Sea reserves. The consensus of the market, with which we agree, reflects this perspective and a potential appreciation of over 11%, with a target price of 0.42 lei/ share.”
