Bucharest Stock Exchange Posted
Radu Hanga, BVB President:
Adrian Tanase, BVB CEO:
Investors have intensified their activity this year on the Bucharest Stock Exchange (BVB) in an ambivalent context that highlighted the unprecedented opportunities offered by the local capital market characterized by an effervescence of the listings of shares and bonds, on one hand, and the economic uncertainties exacerbated by the global health crisis, on the other hand. On BVB’s Regulated Market, liquidity measured by the total trading value of all types of financial instruments increased by 21.6% in the first 11 months and reached RON 17.4 billion, the equivalent of EUR 3.5 billion. In terms of the average daily trading value, the liquidity indicator shows an increase of 20.5% to RON 75 million, the equivalent of EUR 15.2 million.
Regarding the evolution of liquidity on the Multilateral Trading Segment (MTS), the total trading value with all types of instruments listed on the MTS amounted to RON 1.4 billion, or EUR 286 million. Compared to a level of RON 409.3 million in the first 11 months of last year, the liquidity on MTS increased this year by 242%. The average daily value of transactions made this year on MTS was RON 6.7 million, which translated into an advance of 126% compared to RON 2.96 million last year.
The recent developments in the coronavirus pandemic have raised a number of concerns about the potential impact on the economy. November brought a recoil on BVB’s Main Market, which translated into the widest negative monthly variation recorded this year, of 3.2%, at the level of BET and BET-TR indices. In such a context, the Romanian capital market showed resilience and managed to maintain a significant level of growth in the first 11 months of the year. Thus, at the level of the BET index, which currently includes the 19 most traded companies, the increase registered this year was 24.4%. According to Refinitiv Eikon and BVB data, at the level of price return indices, after the first 11 months, the BET-TR index registered an increase of 30.7%, US’s S&P500 of 26%, and Europe’s STOXX600 of 20%. The Romanian market also outperformed in relation to the MSCI Frontier Markets index (+ 20%) or the FTSE Emerging Markets index (-1%).
„Romanians who saved money are now fighting an invisible enemy. With an inflation rate that has accelerated this year and reached almost 8% at the end of October, it is very important for people to diversify their savings. One solution would be to turn their attention to the stock market, with stocks being an instrument of protection against inflation. The Romanian stock market offers multiple examples of success stories and highlights local companies. Growth rates of over 30% took place this year at the level of companies in the BET-TR index, which also includes dividends. We are talking about solid Romanian companies, many of them being part of the daily life of the population,” said Radu Hanga, President of the Bucharest Stock Exchange.
„The uncertainties generated by the pandemic are also felt in Romania, as it happens in other countries or on other stock exchanges, and we have seen that the financial markets react to news regarding the health situation. One solution for Romanian investors in the face of volatility is to diversify their investments, both across sectors and asset classes. We are on track to have one of the best years in the history of the stock market and even surpass the 2020 record in terms of total trading value. Liquidity indicators have gone up by over 20% this year, a sign that investors have increasingly accessed the instruments offered by the capital market,” said Adrian Tanase, CEO of the Bucharest Stock Exchange.
Overall, the Romanian companies listed on BVB have become increasingly valuable. The capitalization of the companies present on the Regulated Market of the stock exchange reached RON 215.7 billion, the equivalent of EUR 43.6 billion, at the end of November. Compared to the level of RON 154.4 billion (EUR 31.7 billion) since the end of last year, the capitalization of Romanian companies has increased by almost 40% this year alone. The market value of the companies listed on MTS also increased, from RON 9.7 billion at the end of 2020, to RON 16.9 billion at the end of last month, which corresponds to an increase of 74%.
Starting from September 20, 2021, Romanian companies became more visible on the radar of international investors after Romania boosted its presence in the indices of the global provider FTSE Russell to five companies: Banca Transilvania (TLV), Nuclearelectrica (SNN), OMV Petrom (SNP), TeraPlast (TRP) in FTSE Global All-Cap, and Bittnet (BNET) in FTSE Global Micro-Cap. Romania’s representativeness will increase and will reach seven companies starting from December 20, 2021, when the shares of One United Properties and Transport Trade Services will be included in the FTSE Russell indices dedicated to Emerging Markets, FTSE Global All Cap, respectively FTSE Global Micro Cap.
The Bucharest Stock Exchange continues its efforts to develop the local capital market. In order to keep the momentum of the current trend characterized by accelerated listings of financial instruments, BVB has approved the simplification of the listing procedure on the Multilateral Trading Segment, a procedure that will enter into force at the beginning of next year.