Bucharest Stock Exchange kicks off 2022 with a new all-time high. Over 16000 trades performed in a single day

2/15/2022

  • Investors set a new trading record on January 25th on the Bucharest Stock Exchange (BVB) in terms of the number of transactions: over 16,100 orders made in a single day.
  • Transactions with shares listed on the Regulated Market increased by 158% compared to January of the previous year and exceeded RON 2 billion, the equivalent of EUR 400 million.
  • The Romanian capital market closed the first month of the year in positive territory: + 1% for BET and + 1.6% for BET-TR, the index that includes dividends.

Radu Hanga, BVB President:

  • We had a strong start in 2022 after the capital market reported several records last year. The very good results we get are due to the actions taken by all stakeholders involved in the capital market. It is the merit of all market participants united around BVB because together we have made possible an unprecedented series of performances.
  • We are presented ahead with many opportunities, but also with corresponding challenges. Romania has the chance to position itself as a landmark of stability in the region and to be an attractive destination for capital sources. In addition, the Romanian capital market is ready to face any challenges and has demonstrated this on multiple occasions.

Adrian Tanase, BVB CEO:

  • We are glad that one of the priorities for 2022 that we announced last month has already received the approval of the Romanian Senate, and the project is to be debated by the Chamber of Deputies. Simplifying fiscal procedures for individual investors by introducing the withholding tax system for capital gains will facilitate Romanians’ access to the capital market.
  • We have the historic opportunity to carry out this year one of the most ambitious national projects dedicated to the capital market, that of the Central Counterparty. We have a unique opportunity to build together a Romanian project, which will substantially develop the Romanian capital market. In a challenging international context, we welcome the involvement of all stakeholders in this project of unity and construction.

 

 

The volatility in the international markets also spilled over to the Romanian capital market in January, and the investment activity intensified against the backdrop of the escalation of the international uncertainties. The factors that decisively influenced the capital markets in January included an update in the investment strategies after a record-breaking 2021, which resulted in a recalibration of previously held positions by investors, an escalation of events on the tense situation in Ukraine, and a reanalysis of investors’ expectations regarding an increased inflation rate and the anticipation of the central banks’ direction to increase the key interest rate.

The Romanian capital market aligned in January to these trends, which led to record increases in some liquidity parameters of the Bucharest Stock Exchange (BVB). In this regard, the number of transactions reached a new all-time high in the trading session from January 25th, when 16,106 transactions were made with all types of financial instruments listed on the Regulated Market and the Multilateral Trading System. It was for the first time that the threshold of 16,000 transactions per day was exceeded. The previous record had been set in the trading session from August 24, 2015, with 15,981 transactions. Table 1 shows the ranking of trading sessions according to the number of daily transactions.

Table 1. Top 10 most active trading sessions on BVB by the number of trades

Date (mm-dd-yyyy)

Number of trades

1/25/2022

16106

8/24/2015

15981

1/21/2022

15953

8/9/2011

15900

4/9/2009

15388

12/19/2018

15349

12/21/2007

15305

7/17/2007

14864

7/27/2007

14627

7/10/2007

14370

Table 1: The ranking of the 10 most active trading sessions on BVB based on the number of trades with all types of financial instruments listed on the Regulated Market and the Multilateral Trading System, excluding the Initial Public Offerings (IPOs). Source: BVB.

 

Inside the market, significant movements took place in January in terms of transactions with the shares listed on the Regulated Market: the value of these transactions increased by 158% compared to January of the previous year and exceeded RON 2 billion, equivalent to EUR 400 million. Significant increases in the value of trading with shares also took place on the Multilateral Trading System (MTS) of BVB, where the total value of shares traded in January this year was RON 80 million, up more than 50% from the level of RON 53 million lei from January 2021.

The average daily trading value achieved in January with all types of financial instruments exceeded RON 110 million (EUR 22.3 million) on the Regulated Market, more than double when compared to the level of RON 54 million (EUR 11 million) from January 2021. The same indicator of liquidity on MTS showed an increase of 44% compared to the first month of the previous year: from RON 4.35 million to RON 6.26 million.

The Romanian capital market closed the first month of the year in positive territory: + 1% for the BET index, which includes the 19 most traded companies, and + 1.6% for the BET-TR index, which also includes dividends.

„We had a strong start in 2022 after the capital market reported several records last year. The very good results we get are due to the actions taken by all stakeholders involved in the capital market. It is the merit of all market participants united around BVB because together we have made possible an unprecedented series of performances. We are presented ahead with many opportunities, but also with corresponding challenges. Romania has the chance to position itself as a landmark of stability in the region and to be an attractive destination for capital sources. In addition, the Romanian capital market is ready to face any challenges and has demonstrated this on multiple occasions,” said Radu Hanga, President of the Bucharest Stock Exchange.

„We are glad that one of the priorities for 2022 that we announced last month has already received the approval of the Romanian Senate, and the project is to be debated by the Chamber of Deputies. Simplifying fiscal procedures for individual investors by introducing the withholding tax system for capital gains will facilitate Romanians’ access to the capital market. We have the historic opportunity to carry out this year one of the most ambitious national projects dedicated to the capital market, that of the Central Counterparty. We have a unique opportunity to build together a Romanian project, which will substantially develop the Romanian capital market. In a challenging international context, we welcome the involvement of all stakeholders in this project of unity and construction,” said Adrian Tanase, CEO of the Bucharest Stock Exchange.

The Romanian capital market last year reported one of the best years in history. Thus, the cumulative value of transactions with all types of financial instruments from the Regulated Market exceeded, for the first time, the threshold of RON 20 billion, the equivalent of over EUR 4 billion. This level was 9.5% higher than that posted at the end of 2020, when total transactions reached RON 18.3 billion, the equivalent of EUR 3.77 billion. New all-time highs for liquidity indicators were also recorded on MTS. The total trading value with all types of financial instruments reached RON 1.63 billion (equivalent to EUR 330 million), increasing by 253% compared to the level of RON 460 million (equivalent to EUR 95 million) in 2020. Also, at the end of last year, the Romanian companies listed on BVB reached a record market value of RON 161 billion, 44% above the capitalization reported in the last trading session of 2020.

The Romanian stock market consolidated in 2021 its fundamental role as a financing platform for the Romanian economy: 23 companies were listed on the stock exchange in a single year, another 27 companies issued bonds, and the Romanian state attracted through primary offers of Fidelis government bonds over EUR 875 million. In total, the financing rounds attracted by the 23 companies reached EUR 234 million in 2021, and the 45 fixed income issues listed on BVB attracted financing of over EUR 1.8 billion.