Analyses of foreign portfolio investment at Bucharest Stock Exchange in Global Financial Crisis

IBIMA Business Review

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Daniela Enăchescu, Mirela Matei, and Dorel Dusmănescu

Volume 2009(2009), Article ID 382960, IBIMA Business Review, 29-36 pages, DOI:

Received date : ; Accepted date : ; Published date : 11 November 2009

Abstract

The globalisation of financial markets, facilitated by new technology, under which a shock in one region is rapidly transmitted to other centres all over the globe, had ensured that, in less than a year, the USA financial crisis has spread across the continents, including countries that are not so very linked regarding financial markets.  The capital market in Romania is a market of shares, bonds market being in a process of development, a phenomenon specific to the countries of Central and Eastern Europe. Unfortunately, the weak integration of our stock exchange on international and European financial market and a poor transparency of the transaction at BSE established a masive turmoil of the BSE activity. In this paper the authors will try to analyse the impact of the USA financial crisis in Romanian Stock Exchange markets, especially the foreign portfolio investment in BSE.

Keywords: financial crisis, BSE, foreign portfolio investment