Romanian Stock Exchange is the cheapest in CEE, says Mark Mobius

Newsroom 17/01/2011 | 16:22

The Romanian Stock Exchange is the cheapest in Central and Eastern Europe taking into account the report between the price of a share and its accounting value, said Mark Mobius, the executive president Franklin Templeton Emerging Markets.

“Romania under-performed over the last five years and I think it is the cheapest market in Central and Eastern Europe, if we are to consider the Price to Book ratio evaluation,” he said, also adding that emerging markets have a high growth potential.

“I believe this year emerging markets will grow three times faster than developed markets. The ratio between the debt of emerging states and the GDP is very small,” said Mobius.

While in developed countries the weight of the public debt in the GDP has increased from 68 to 90 percent over the last 10 years, in emerging states it has dropped from 48 percent to slightly over 30 percent, he also said.

“Emerging markets have a great deal to catch up, but this can only mean there is a lot of potential to be developed. Romania is a frontier country and this makes it more attractive for investors,” said Mobius.