Monthly overview of the markets of Status New Shares and Status Finance – October 2009
13.11.2009
The markets formed local peaks in the second half of the month and returned to levels from September. Although a large part of the developed economies show clear signs of recovery from the recession this positive development has not yet transferred to southeast European countries. The expectations that a real recovery of the growth rates will occur in the first half of the next year cools off risk appetites for the moment. There are still no clear signs of improvement in the financial reports of most of the leading companies in the region. A certain lag in the growth of corporate sales and profits is expected due to the strong dependency of export sectors on recovery of demand for their trade partners mainly in western Europe.
Our expectations that the financial companies will enter a period of correction in October were confirmed. The substantial amount of free funds in October enabled us to increase the share of assets at the end of the month. The main focus of our new investments are banks in Poland and the Eurozone. We expect that after Turkey these will be the markets with the fastest reaction to positive development of fundamentals.
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