New all-time highs for the Romanian stock market in early 2024

Wednesday, 14 February 2024

During January, the market capitalisation of companies listed on the Main Market and AeRO Market of the Bucharest Stock Exchange peaked at RON 321 billion (EUR 64.5 billion).
The total value of trades in all instruments on the Main Market and AeRO amounted to RON 1.7 billion, up 152% compared to the same month in 2023.
The average daily trading liquidity in the first month of 2024 was over RON 87 million.
Capital market financing continued in the first month of the year.
The main BET index reached a new all-time high. The index climbed in January for the third consecutive month.
The number of investors continued to grow and reached 178,000 at the end of last year, according to FCI data.

Radu Hanga, BVB President:

“The capital market continued in January 2024 the positive trend of 2023, which highlights the interest of investors in the opportunities offered by the economy, the entrepreneurial environment and listed companies. The activity in financing rounds through the Bucharest Stock Exchange continues and we have already had the first listing this year, a €76 million municipal bond issue by Cluj County Council, and the signals we are receiving are that listings will continue”.

Adrian Tanase, BVB CEO:

“At the beginning of 2024, the Romanian stock market recorded new records in terms of capitalization of listed companies and the level of the main BET index, continuing the positive trend of the previous year. We recorded an average daily value of transactions with all instruments, both on the Main Market and on the AeRO market, of RON 87 million, among the highest values recorded in January of the last years.”

The Romanian stock market started 2024 with new records in terms of the capitalization of listed companies and the level of the main BET index and thus continued the positive dynamics of the previous year, characterized by record performances on multiple levels.

Thus, during the month of January, the capitalization of issuers on the Main and AeRO Markets of the Bucharest Stock Exchange reached a maximum of RON 321 billion (EUR 64.5 billion), reflecting investors’ confidence in the growth prospects of the Romanian economy and listed companies.

On 15 January 2023, the BET representative index, which reflects the evolution of the 20 most traded stocks, reached an all-time high of 15,803 points, which at that time corresponded to a 2.8% increase since the beginning of the year.

The index ended January 0.9% above its December 2023 level at 15,512 points, with January being the third consecutive month of gains, after rising 4.5% in December and 3.5% in November. All stock indices except BET-FI closed higher for the first month of 2024, with the BET-AeRO index even appreciating by almost 6%.

In the last trading session in January, the capitalization of companies listed on the Main Market and AeRO was RON 317.9 billion, up by about RON 9 billion compared to the last trading session in 2023.

The positive development comes after the Romanian stock market reached multiple all-time highs in 2023, in a year in which one of the key moments was the successful completion of the largest share listing in Europe, namely that of Hidroelectrica, worth RON 9.3 billion (EUR 1.8 billion). This listing strengthened the BVB’s position in the European financial landscape and generated a significant wave of interest and confidence in the Romanian capital market.

Bond financing rounds through the Romanian capital market continued in the first month of 2024 after last year’s record €3.5 billion through 32 listings of such instruments. Thus, on 18 January, bonds worth €76 million issued by Cluj County Council started trading, following a private placement concluded in December. Cluj County thus joined 4 other counties and 15 cities in Romania that currently have bonds listed on the Bucharest Stock Exchange.

The number of investors on the Romanian capital market continued to grow and reached 179,000 at the end of 2023, a new historical high, according to data from the Investor Compensation Fund (FCI). The number of investors increased by 46,000 or 34% compared to 2022, with the biggest increase in Q2 (18,000), when there was also the discount period in the H2O IPO. In Q1 and Q3 there were around +8,500/quarter, and in Q4 there were over 10,000.

Over 37,000 investors (21% of the total) hold only Fidelis government securities in their portfolios. An important contribution to this dynamic is made by Fidelis government securities, which are suitable for people wishing to take their first step in the capital market.

The total value of trades in all instruments on the Main Market and AeRO amounted to RON 1.7 billion in January 2024, up 152% compared to the same month in 2023. This value, based on the 19 trading sessions in the first month of the year, means an average daily liquidity of RON 87 million, among the highest values recorded in January in recent years.