Electrica signed a new market making services contract with Wood&Co for assuring a good liquidity in the stock market, according to a report submitted to the Bucharest Stock Exchange.
Thus, the company informed the shareholders on Wednesday “that, in order to support the liquidity of its listed shares, it has concluded a Market Making services contract with Wood & Co, starting with September 30, 2020”, the report states.
Although the terms of the contract have not been published, the liquidity assurance service is usually provided by a private player through transactions in its own name. Thus, the securities may become more attractive to investors, due to increased liquidity and a higher trading volume, while the clauses may also include protection against stock market shocks, by the fact that the shares are protected so as not to fall below a certain value.
Electrica’s titles have been rising since mid-June, following a sharp drop in March in the midst of a pandemic crisis.
The securities registered a minimum quotation of 7.9 lei in March, after which they had a sustained upward trend, up to a maximum of 11.85 lei, in September (an advance of almost 50%).