Bucharest Stock Exchange mirrors global markets to reach all-time highs as BET-TR index which also includes the dividends spikes 35 percent in the first 7 months

8/16/2019

  • The BET-TR index, which includes the dividends paid by the companies from the BET index, spiked 35 percent in the first 7 months of the year to reach an all-time high of 14,732 points.
  • The BET index, including the most-traded 16 companies except for the Financial Investment Companies, closed at 9,204 points at the end of July. It is the highest level from the past 10 and a half years.
  • Adrian Tanase, BVB CEO: The paradox of the Romanian market is that too few investors were in the market at a time when we are talking about all-time highs for BET-TR and the climax of the last decade for the BET index. Our efforts will be focused on attracting a greater number of people to the capital market so that the savings of as many Romanians as possible benefit from the favorable developments that the capital market offers in the long run. Broader participation of the population in the capital market will significantly impact the Romanian economy and the size of the stock market, which is now one of the smallest in the European Union as it accounts for only 10 percent of GDP.
  • Lucian Anghel, BVB President: The capital market has proven to be the most generous producer of welfare. It is difficult to find today a better, regulated and transparent environment that can generate over 35% profit in just seven months, as was the case with the BET-TR index, which also includes the dividends offered by the largest companies listed on the stock exchange in Romania.

 

The Bucharest Stock Exchange (BVB) reached new all-time highs for the BET-TR index, which also includes the dividend paid by the companies included in the BET index. The trading session from July 31st saw the BET-TR index closing at 14,732 points or some 35 percent over the end of last year. The extensive growth rate was also fueled internationally. A strong positive boost of the investor sentiment sent US’s Dow Jones and S&P 500 to new record highs.

The international rally was a hop-on for the BET index, mirroring the evolution of the most-traded 16 companies except for the Financial Investment Companies. The last trading session from July propelled the BET index to 9,204 points, a level which was last witnessed 10 and a half years ago. From the beginning of the year, BET has spiked 25 percent.

The high tide did not flood all the areas of the capital market, as the trading zone was left dry. The up and down swings from the beginning of the year had their say when it came to the average daily trading value. Seven months into the year, it stood at the same level as in the same period last year, accounting for some EUR 9 million.

"The paradox of the Romanian market is that too few investors were in the market at a time when we are talking about all-time highs for BET-TR and the climax of the last decade for the BET index. Our efforts will be focused on attracting a greater number of people to the capital market so that the savings of as many Romanians as possible benefit from the favorable developments that the capital market offers in the long run. Broader participation of the population in the capital market will significantly impact the Romanian economy and the size of the stock market, which is now one of the smallest in the European Union as it accounts for only 10 percent of GDP", said Adrian Tanase, CEO of BVB.

"The capital market has proven to be the most generous producer of welfare. It is difficult to find today a better, regulated and transparent environment that can generate over 35% profit in just seven months, as was the case with the BET-TR index, which also includes the dividends offered by the largest companies listed on the stock exchange in Romania", said Lucian Anghel, President of the Board of Governors of BVB.

The market value of the Romanian companies listed on BVB topped RON 103 billion at the end of July. It was the seventh-highest value recorded by the locally listed companies, while record-high capitalization was witnessed in April 2018, at a peak of RON 103.7 billion posted on April 24, 2018.