The total market cap of the companies listed on Bucharest Stock Exchange hits new all-time record

9/8/2021

  • The companies listed on the Bucharest Stock Exchange (BVB) reached a new all-time high in terms of market capitalization: RON 205 billion.
  • When looking exclusively at the Romanian companies listed on BVB, their market cap hit new-all time records as well: RON 133 billion.
  • All these values were recorded in the second to last trading session from August, and include only the companies listed on the Regulated Market of BVB.
  • The Romanian capital market surged by nearly 30% in the first 8 months as mirrored by the evolution of the BET-TR index, which also includes the dividends.
  • Radu Hanga, BVB President:
    • The value of the companies listed on the Romanian stock exchange has reached the highest level in history! It is a stellar performance and a strong signal that going public as a company sets the ground for development.
    • The stock exchange is a financial highway for capital flows, and we enjoy the speed of the listings announced this year by Romanian companies.
  • Adrian Tanase, BVB CEO:
    • It is the best example of what it means to let the capital market work for you. The current evolution rewards those who believe and invest in the Romanian market.
    • This moment can be an accelerator for the listing of new companies, but any moment is opportune to be present on the stock exchange because the market is the one that reflects the value.

 

For the first time in history, the cumulative capitalization of companies listed on the Regulated Market of the Bucharest Stock Exchange (BVB) reached RON 204.9 billion, the equivalent of EUR 41.5 billion. The 84 companies listed on the main segment of BVB reached new all-time highs in terms of capitalization level in the second to last trading session of last month, on August 30th, after having broken record after record for this indicator throughout August. Taking into account exclusively the Romanian companies listed on the Regulated Market of BVB, their capitalization reached new all-time highs also in the stock market session of August 30th and reached a level of RON 132.9 billion, the equivalent of almost EUR 27 billion.

The Top 10 stock market trading sessions according to the highest level of capitalization were held exclusively in August 2021, both at the level of all companies and exclusively at the level of Romanian companies listed on the Regulated Market of BVB.

The Romanian capital market reached new all-time highs in August. Thus, for the BET index, which includes the 17 most traded companies listed on BVB, a record of 12,463 points was reached, and for the BET-TR index, which also includes dividends, the all-time high reached in August was 21,910 points. This year alone, the increase for the BET index was 24.2%, and the surge for the BET-TR index was 29.7%.

“The value of the companies listed on the Romanian stock exchange has reached the highest level in history! It is a stellar performance and a strong signal that going public as a company sets the ground for development. The cumulative capitalization of all companies listed on the stock exchange, both on the regulated market and on the AeRO market, accounts for RON 220 billion. At the moment we are at 18,2% - 20,1% of the Gross Domestic Product, reporting the current capitalization of the companies listed on both markets of BVB to the GDP estimated for this year or the one achieved in 2020. The stock exchange is a financial highway for capital flows, and we enjoy the speed of the listings announced this year by Romanian companies, both in terms of issuing bonds and equity. We encourage the listing of as many companies as possible because by being on the stock market they can bring, in the long run, prosperity for shareholders and for Romanians who invest in them,” said Radu Hanga, President of the Bucharest Stock Exchange.

“What is happening in the market now is the best example of what it means to let the capital market work for you, and the only condition is to be present in the market. Being an investor is more than a status, it is the reward of the one who puts capital to work, not just works to generate capital. The current evolution rewards those who believe and invest in the Romanian market. These moments of all-time highs can be an accelerator for listing new companies, but any moment is opportune to be present on the stock exchange because the market is the one that reflects the value and offers a continuous and transparent feedback. In addition, Romania is gaining more and more visibility and exposure externally as our country’s share in the structure of international indices increases,” stated Adrian Tanase, CEO of BVB.

The average daily liquidity for all types of financial instruments increased by 18% in the first eight months compared to the same period of the previous year, from RON 57.6 million (equivalent to EUR 11.9 million) to RON 68 million (equivalent to EUR 13.9 million). The stock market liquidity measured in terms of total trading value increased by almost 20% accounting for all types of financial instruments, from RON 9.6 billion (EUR 1.99 billion) in the first eight months of 2020 to RON 11.4 billion (EUR 2.3 billion) in the first eight months of this year.

The investment activity at BVB has continued its ascending course this year, following the record results obtained in 2020 when the investors present on the Romanian stock exchange traded financial instruments totaling RON 18.3 billion, the equivalent of EUR 3.77 billion. It was the highest annual value ever recorded on the main segment of the Romanian stock market and exceeded by almost 25% the previous record recorded from 2007. In September 2020, Romania was promoted to the status of Emerging Market by the global index provider FTSE Russell.