In a recent post published on its blog, Mark Mobius, executive chairman of Templeton Asset Management underlined once again the idea that “privatization brings positive development for emerging and frontier markets. It makes companies more attractive to investors, including foreign investors, and leads to higher efficiency, which can lead to higher profit margins.”
In terms of specific sectors, Mobius believes the greatest potential in Romania can come from privatizing companies in the energy sector. The transportation sector also appears to have important potential in the long term, as do postal services.
In his view, greater transparency, higher reporting standards and more opportunities to invest should attract both local and foreign investors to the Bucharest stock exchange (www.bvb.ro).
According to Mobius, the market is currently dominated by Romanian residents, who made approximately 70-80 percent of the exchange’s trade volume in 2009, but foreign investors play an important part as well. Although they accounted for only 20-30 percent of trades that year, they are often seen as trend-setters.
More here: Privatization in Romania
D.V.