Romanian brokerage companies recorded a loss of 36 million Euros in 2008

After last year’s stock market fall generated 36 million Euros in loss, less than a quarter of the 80 brokerage firms operating on the Bucharest Stock Exchange managed to finish last year recording a profit. According to data published by the Romanian Public Finance Ministry, the total loss of the whole sector rises up to 131.2 million Lei (35.6 million Euros).

The Romanian Public Finance Ministryas report shows that only 19 of the 77 brokerage firms active on the Bucharest Stock Exchange succeeded on closing their market positions on time, and adjust their costs to maintain their net result above the red line.

According to the information, losses were recorded, mainly, due to the undervaluation of the portfolio value, because brokerage companies in Romania did not sell off their stocks on time.

Another interesting aspect, is that the companies that managed to avoid losses in 2008 recorded a shrinkage in market share. EldaInvest Galati, for example, dropped 1%, after in 2008 it had intermediated 2,6% of all transactions on the Romanian stock market, and also smaller firms, like Delta Valori Mobiliare or Actinvest dropped under 1% market share, after in 2008 they had intermediated 1.7% of all stock market transactions.