Franklin Templeton: FP’s liquidity grows sustainably after the LSE listing

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The manager Franklin Templeton (FT) has seen an increase in liquidity of Fondul Proprietatea (FP) after its secondary listing, which indicates a positive impact on the local capital market, according to FT. The main titles in FP’s portfolio are energy companies shares.

As such, the transaction values with FP shares at the Bucharest Stock Exchange (BSE) fell only in May, while in April, June and July were held up to a record.

“In anticipation of the secondary listing on the London Stock Exchange in April, the average daily trading value (ADTV) of the Fund on the Bucharest Stock Exchange increased by 17% to the month, compared to the ADTV in the first quarter of 2015. Interestingly, the proportion of the Fund’s total ADTV of the BSE increased from 26% in Q1 to almost 30% in April, due to increased interest and transactioning prior to listing on the LSE,” reads a FT release.

In May there was a decrease in both the Fund’s liquidity and average daily trading at the BSE.

Yet, subsequent months showed a complete reversal, so that the average liquidity of the Fund on BSE rose again in June by 19% and by over 52% in July 2015 compared to the average in Q1 2015. Furthermore, the proportion of the Fund reached a high of 32% of the ADTV of BSE in July, FT officials say.

“As a result, in addition to the new liquidity line created with the listing on the LSE of the Fund, the Fund’s liquidity on the Bucharest Stock Exchange also increased, with a positive impact on the overall liquidity of the capital market in Romania.”

Grzegorz Konieczny, executive vice president of Templeton Emerging Markets Group and Portfolio Manager of the Fund, said:

“We are very pleased to see the positive impact of secondary listing on the London Stock Exchange. Our objective was to bring the Property Fund in a market where international investors would have had easier access to the Fund. The evolution of our shareholders to date demonstrates that we have met this objective. Further, we note an increased interest in the Fund, given the size of the program GDRs on LSE, which currently represents about 32% of all available shares. This is good news for Romania, which is now more accessible to foreign investors, leading to a positive impact on the local capital market.”

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Bogdan Tudorache

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