ARIR online discussion: Market Sentiment in COVID-19 times

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The Romanian Investor Relations Association (ARIR) is organizing today at 10:00hrs an online discussion about the global market sentiment in times of COVID-19 and how linked is the Romanian market to the global trends.

Speakers will provide an overview of the current situation and their views on what to expect from the markets:

• Claire Lavery, Rivel Research & IR Society

• Radu Hanga, President BoD, Bucharest Stock Exchange
• Adrian Tănase, CEO, Bucharest Stock Exchange
• Cristian Popa, Member of the Board, National Bank of Romania
• Johan Meyer, CEO, Franklin Templeton
• Vlad Stoicescu, Strategy and European Compliance Manager, Bucharest Airports National Company
• Dragoș Manolescu, CIO, OTP Asset Management
Moderator: Daniela Șerban, President, ARIR

With Romanian markets following the global mood and being at new bottoms, investment community around the world is bravely navigating crisis times. ARIR will approach the following topics:

What is the global market sentiment?
How linked is Romania to global markets?
Are new bottoms yet to come?
Lesson learned from previous crisis?
Choosing moments to trade?
IPO markets, and what is to be expected?
Measure to recover, what are the time perspectives?

The discussion will be in English. Romania Journal is supporting the event as media partner.

Watch the discussion here.

 

Claire Livery, Rivel Research & IR Society said: “Over the past few weeks, we interviewed both the investment community and the global IROs to understand the impact of COVID-19. Companies went from seeing the corona virus “a minor” to “serios” threat, with 41% viewing it now as a “very serious” one and 51% as “a serious” threat to the global economy.

From an investors’ communications perspective and what investors want to know, our perception study revealed that they want to understand the outlook and the financial impact of the virus, the liquidity and the strength of the balance sheet. It is imperative for IROs and management to be accessible and responsive now more than ever. In this respect, the study shows that companies think they are doing a pretty good job responding and keeping investment community informed, 28% saying they do “very well” and 42% “somewhat well”.

 

Daniela Serban, ARIR President:We see the struggle of the Governments to handle between lack of resources at the state budget and solutions in order to avoid stopping the economy. The stock markets worldwide turned on a negative trend since the crisis started, with small and slow rebounds once financial measures were announced by countries or in Asia where the fight with COVID-19 has brought some results.

Romanian capital markets have connected with the global markets once investors were in some cases forced to sell. We should also see the glass half full and notice the discounts that are available on all markets, and opportunities to buy”.

 

Cristian Popa, Member of the Board National Bank of Romania: “Compared to a decade ago, the banking sector is much better prepared to tackle the current situation, it is well capitalized, the liquidity is quite good, and the indebtedness of the clients is much lower. We cut the interest rate. Also, the central bank will start an acquisition program of treasury bonds. We are ready to cut the minimum reserve rates if needed, as a measure to increase more the liquidity in the market, so that money flows into the system and economy.

We encourage banks to use the liquidity facility at their disposal as we are here to provide liquidity and we took measures in this direction. Bank level liquidity ratio is over 100%, so the entire banking sector is functioning well.”

 

Radu Hanga, President BoD BVB: “The local economy is much more stable compared to previous crisis. The most visible improvement is in the leverage of the economy. There is less debt in the market and we saw the deposits in the banks going up in the last years, with around 10% per year.

At the Bucharest Stock Exchange, we are focusing on operating as usual, of course with most of the people working from home. We have to provide what we committed ourselves to the investors and to the listed companies – to keep an open market and to provide liquidity to those who are willing to buy or to sell.

Each crisis provides threats, but also opportunities. Even if it looks like a difficult environment, there is also an opportunity to buy stocks at various local companies at discounts of 30-40% compared to what we had 1-2 months ago.”

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