Share price of Romanias Property Fund hits 12-month high.

By bne IntelliNews March 6, 2013
The share price of Romania's Property Fund have exceeded the psychological threshold of RON 0.6 (EUR 0.14) for a first time in the past 12 months after registering sustained gains in the previous days and a 0.31% rise on March 5, news agency Mediafax reported. This is, however, still a 47.8% discount versus what the fund's manager, Franklin Templeton Investment Management, calculates to be the net share value. The fund's shares remain among the most traded on the Romanian stock exchange, along with those of close-end investment funds SIF. Some 85% of the Fund's portfolio consists of shares of major local energy companies like Hidroelectrica, OMV Petrom and natural gas company Romgaz. The energy market liberalisation and the streamlining of the activity in state-controlled energy companies via IPOs and SPOs are expected to help the Fund's shares come closer to the net value calculated by Templeton. Both the five SIFs and the Property Fund are vehicles set up by the reformist regimes in the past decades with the purpose of mass privatisation and property restitution. Their initial evolution, particularly the distribution and trade outside the market before their listing on the stock exchange, was marked by irregularities. Neither the SIFs nor the Property Fund have met successfully their original purpose [namely mass privatisation and property restitution, respectively], but they still remain the most traded issuers on the local stock exchange.
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