Dan Popovici, OTP Asset Management: "The success of the Hidroelectrica offer led to an increase in the notoriety of the exchange among the public"

Hidroelectrica's listing was a historic event for the Romanian capital market if we think about the value of the offer, the fact that we have listed a company active in an extremely interesting field, that of green energy production, and the injection of liquidity brought to the market of capital, says Dan Popovici, General Manager of OTP Asset Management.

From his point of view, the listing of Hidroelectrica had two very important values. On the one hand, we have a company with a significant capitalization and relatively good liquidity compared to the average registered at the Bucharest Stock Exchange. But on the other hand, the listing of Hidroelectrica generated the mammoth dividend granted by Fondul Proprietatea, a dividend that overwhelmingly returned to the market. Under these conditions, the available liquidity, respectively the amounts that went to the capital market, increased significantly.

"Furthermore, the successful conclusion of the Hidroelectrica share sale offer and the subsequent positive developments led to an increase in the notoriety of the stock exchange among the general public. Under these conditions, we have seen a significant increase in Romanians' interest in capital market instruments, regardless of whether we are talking about direct investments in shares or investments in share funds", added Dan Popovici.

• "The high share of Hidroelectrica shares in local stock indices - an important element in the positive evolution of the company's shares"

According to the Director of OTP Asset Management, the generous dividend distribution policy and the high weighting of Hidroelectrica's shares in the local stock indices are two important elements for the positive dynamics of the company's share price, from the listing until now.

"As I said, in recent months we have witnessed a significant increase in the interest of investors towards the capital market in Romania and, implicitly, important flows of money directed towards Romanian shares. Under these conditions, and taking into account the fact that Hidroelectrica's shares are among the most liquid on the BSE, we are obviously witnessing constant inflows of money to these shares", pointed out Dan Popovici.

• "For long-term investors, episodes of high volatility can represent opportune times to enter or increase exposure"

The director of OTP Asset Management expects the positive course of Hidroelectrica shares to continue at least until the end of this year, but with passing moments of high volatility.

"As we approach the end of 2024, regulatory risks will be increasing. The potential fiscal adjustment, so necessary in Romania and which is expected to come after the parliamentary and presidential elections, may cause a change in trend for the Romanian stock market, for a certain period of time.

In any case, we can expect to see moments of high volatility towards the end of this year and into the first part of next year. In these conditions and during the actions Hidroelectrica will be affected for a certain period of time. However, for long-term investors, these moments of high volatility can represent opportune times to enter or increase exposure," added Dan Popovici.