Over 128 000 investors on the Bucharest Stock Exchange an all-time high for the Romanian capital market

Absolute record number of investors at the Bucharest Stock Exchange (BVB): over 128,000 direct investors are present on the Romanian stock exchange, as shown by the data of the Investors Compensation Fund (FCI) at the end of the first 9 months. It is the highest value ever recorded on BVB and substantially surpassed the previous record of 101,000 investors set in 2009. The number of investors began to grow steadily with the outbreak of the coronavirus pandemic and the data show 11 consecutive quarters of increases in the number of those trading on the Romanian stock market. For a comparative picture, the evolution of the number of BVB investors can be seen in Chart 1.

Regarding the number of those who invest indirectly on the BVB, at the end of the first nine months of this year, over 7.9 million Romanians who contribute to Pillar II of mandatory private pensions had exposure to financial instruments listed on the BVB, according to the data of the Association for Privately Administered Pensions in Romania (APAPR) and the Financial Supervision Authority (ASF). Also, at the end of the first nine months of the year, more than 450,000 Romanians invested indirectly on the BVB through open investment funds, as shown by the data of the Association of Romanian Fund Managers (AAF).

„The extent of the stock market phenomenon that has attracted more and more Romanians is remarkable because the last time the Romanian stock market had 100,000 direct investors was in 2009, and this year we reached an absolute record: 117,000 investors at the end of the second quarter and an increase to 128,000 investors at the end of the third quarter. Being on the stock market today, as an investor or a listed company, has become a normality and we believe that this is a healthy basis for a financially educated Romania. At the BVB level, we run a series of projects that, taken together, contribute significantly to the success we have today. We aim to do even more and are involved in developing a capital market strategy”, said Radu Hanga, President of the Bucharest Stock Exchange.

„More and more Romanians are investing in the stock market because the capital market has unequivocally become the most attractive option for investing their savings. It is for the first time that 128,000 investors are present on our stock market, and this proves that the capital market is gaining particular importance in the financial plans of Romanians. Another example that the stock market is developing in the right direction is given by the evolution of the BVB share, as an issuer. BVB shares reached a 5-year high, and investors who were patient were rewarded. The performance of the BVB shares so far this year has reached +34.4%, including dividends”, said Adrian Tanase, CEO of the Bucharest Stock Exchange.

In 2022, at the end of the first ten months, 376 companies were listed on the BVB, 83 on the Regulated Market (RM) and 293 on the Multilateral Trading System (MTS). This year, until November 1, there were 210 trading sessions, in which more than 1.43 million transactions were made with all types of financial instruments, both on RM and MTS. The total value of trading with all types of financial instruments carried out on these venues in the first 10 months of 2022 was almost RON 19 billion, equivalent to EUR 3.8 billion. Of this amount, RON 18.2 billion or EUR 3.68 billion represent the total value of trading with all types of financial instruments on the Regulated Market, which corresponds to a 17% increase in the first 10 months of this year.

The average daily liquidity reached RON 86.6 million, the equivalent of EUR 17.5 million, in the January-October period of this year, which corresponded to an increase of 17.5% compared to the similar period of the previous year.

The capital market in Romania increased by 1.5% in October according to the BET-TR index, which also includes dividends, but the negative evolution recorded in September, in line with the level reported by the international capital markets, made the top ten months of the year to enter the correction territory. In the last trading session in October, the BET-TR index registered a level of 21,000 points, down 9.1% this year. This evolution comes after the performance achieved in 2021, when the BET-TR index increased by 40%.

The evolution of the capital market in Romania has been internationally recognized by the global index provider FTSE Russell and, as of 2020, Romania has been promoted to Emerging Market status. Currently, 13 Romanian companies are included in emerging market indices, and among these companies there is also the BVB as an issuer, a company listed in 2010 on its own market.