All the indices of the Bucharest Stock Exchange (BVB) ended the first two months in the positive territory, a full 180-degree switch after recording only negative results by the end of January. At the end of February, the BET index, which includes the most traded 15 companies except for the Financial Investment Companies, went up by 10 percent as compared to the value from the end of January. A similar increase was reported by the BET-TR index, which also includes the dividends offered by the companies from the BET index.
As compared to the end of the year, the capital market went back to positive results, even though it reported a single-digit growth. Two months into the year, BET and BET-TR each went up by around 4 percent as compared to the value from the end of last year. By far, the biggest increase was reported by the BET-NG index, which includes the companies in the energy field and utilities, and which went up by 9.5 percent.
Therefore, by the end of January, the main market index BET, which includes the most traded 15 companies except for the Financial Investment Companies, went down by 5.8 percent. A similar decline saw the BET-TR index, which also includes the dividends offered by the companies from the BET index. Among the main indices of the stock exchanges from the European Union, only the capital market from Cyprus posted lower results, of 7.5 percent respectively.
According to analysts, the investors retaining shares in the companies listed on the local stock exchange saw as positive the statements from political key persons, who claimed same legislative measures could undergo changes, which last year led the Romanian market to an abrupt decline. The market also reacted after BVB and the strategic partner MedLife together with the institutional partners Romanian Business Leaders, AmCham Romania, and the Coalition for the Development of Romania organized the first edition of the International Summit dedicated to the Romanian capital market.
“At the International Summit organized by BVB in February, from the presentations of the 30 speakers emerged this idea that that capital market is vital to develop the Romanian entrepreneurial businesses and to create wellbeing for millions of Romanians. The value of the local companies listed on the stock exchange, representing a significant portion of the national wealth, went up by 8 percent in February to about EUR 19 billion”, said Lucian Anghel, President of the Board of Governors of BVB.
In order to find the best solutions, BVB has publically expressed openness and availability to dialogue and communication between key role players in the political and business fields. “The local capital market has so much potential to grow, which is why the key projects of the stock exchange will be geared towards turning this potential into existence, the two main directions being the development of the local community of investors and the development of the capital market infrastructure. For all these results to occur, we need to act in a clear and stable legislative framework that stimulated market development, a situation that we hope to see as soon as possible”, said Adrian Tanase, CEO of BVB.
In one single month, the market value of the Romanian companies listed on BVB grew from EUR 17.3 in January 2019 to EUR 18.7 billion at the end of February this year, which is 8 percent more. The capitalization of all the companies listed on the Main Market of BVB accounted for EUR 33 billion at the end of the last trading session from February 2019, or 7.8 percent over the level posted in January.