Romanian companies reward investors by growth rates twice as high as their US or European counterparts in the first 9 months

10/7/2021

  • The Romanian capital market surged by 29% in the first 9 months when looking at the BET index, and by 35.6% when taking into account BET-TR, which includes also dividends. 
  • US’s S&P 500 increased by 14.7% after the first 9 months, while the European index STOXX600 went up by 14%.
  • The total trading value for all the financial instruments traded on Bucharest Stock Exchange (BVB) amounted to RON 13 billion, +4.2% as compared to the first 9 months from the previous year.

Radu Hanga, BVB President:

  • The effervescence of the Romanian capital market meant a significant acceleration of the listings of financial instruments in the first 9 months: 22 bond issues and 6 new government securities issues totaling EUR 1 billion, and 19 new companies listed on the stock exchange with a cumulative capitalization of EUR 1 billion.
  • In line with the new market trends, we have launched and have already begun to promote the new brand identity of the Bucharest Stock Exchange, and responded to investor demand by creating an index in the AeRO segment dedicated to Romanian companies.

Adrian Tanase, BVB CEO:

  • We are continuously developing the capital market organically and sustainably: we have approved the inclusion of two more companies in the BET index, which now has 19 issuers; we are launching the first index for the AeRO segment and another 2 indices for the Regulated Market; we have simplified market access for companies that want to be listed from 2022 on the alternative segment.
  • We position Romania as an attractive capital market in the region, and Romanian companies are gaining more and more exposure in international indices.

 

The Romanian capital market registered significant growth rates in the first nine months of the year, and the companies listed on the Bucharest Stock Exchange (BVB) managed to obtain significant performances in relation to other developed markets. These results were obtained in an ambivalent context: on one hand, the uncertainties generated by the coronavirus pandemic and the estimates of an accelerated increase in inflation intensified, and on the other hand the Romanian capital market was marked by an effervescence of listings and gained more consistency by expanding the number of companies present in international indices. Overall, investors have allocated substantial financial resources to the Romanian capital market, where the total value of transactions with all types of financial instruments reached almost RON 13 billion, the equivalent of EUR 2.6 billion, up 4.2% from the first nine months of the previous year.

In such a context, Romania’s BET index surged by 3.8% in September alone, while the BET-TR index, which includes also dividends, increased by 4.5% over the same period. After the first nine months, the growth rate of the BET index amounted to 29%, with BET-TR up by 35.6%. According to Refinitiv Eikon and BVB data, at the level of price return indices, after the first nine months, the BET index (+ 28.9%) registered a double growth pace compared to US’s S&P 500 index (+ 14.7% ) or to Europe’s STOXX600 (+ 14%). The Romanian market also outperformed the MSCI Frontier Markets index (+ 15%) or the FTSE Emerging Markets index (-1%). The same data show that, at the level of total return indices, BET-TR (+ 35.6%) had a double growth rate compared to S&P500 TR (+ 15.9%) or STOXX600 GR (+ 16.6% ). At the same time, Romania had strongly positive performances compared to FTSE Emerging Markets TR (+ 1.2%) or to MSCI Frontier Markets GR (+ 19.2%). 

„The effervescence of the Romanian capital market meant a significant acceleration of the listings of financial instruments in the first 9 months: 22 bond issues and 6 new government securities issues totaling EUR 1 billion, and 19 new companies listed on the stock exchange with a cumulative capitalization of EUR 1 billion. Being a listed company is about being performant, the BVB-listed companies have become more and more valuable, as shown by the record levels of capitalization reached this year, and they have rewarded investors with significantly higher returns than other developed markets. In line with the new market trends, we have launched and have already begun to promote the new brand identity of the Bucharest Stock Exchange, and responded to investor demand by creating an index in the AeRO segment dedicated to Romanian companies,” said Radu Hanga, President of the Bucharest Stock Exchange.

„We are continuously developing the capital market organically and sustainably: we have approved the inclusion of two more companies in the BET index, which now has 19 issuers; we are launching the first index for the AeRO segment and another 2 indices for the Regulated Market; we have simplified market access for companies that want to be listed from 2022 on the alternative segment. Looking to the immediate future, we will publicly present to our shareholders the stage of implementation of the Central Counterparty project, which has all the chances to become operational in the second half of next year when the first derivative transactions could take place. We position Romania as an attractive capital market in the region, and Romanian companies are gaining more and more exposure in international indices,” said Adrian Tanase, CEO of the Bucharest Stock Exchange.

Romanian companies have become increasingly visible on the radar of international investors. Starting from September 20, 2021, Romania has five companies in the indices of the global supplier FTSE Russell: Banca Transilvania (TLV), Nuclearelectrica (SNN), OMV Petrom (SNP), TeraPlast (TRP) in the indices FTSE Global All-Cap, and Bittnet (BNET) in the FTSE Global Micro-Cap index. Regarding the domestic market, Bucharest Stock Exchange continues its development efforts and, starting from October 11th, launches BET AeRO, the first index dedicated to the multilateral trading segment that will include at that time 20 Romanian companies. Together with BET AeRO, BVB will launch two more indices for the Regulated Market: BET-TRN and BET-XT-TRN represent the variants of total net yield of the BET-TR and BET-XT-TR indices. More details are available here. 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. Further information can be found here.