Total trading value breaks RON 10-billion ceiling in the first 7 months as the Romanian capital market goes up 25 percent

8/12/2021

  • The intense trading activity at BVB caused the cumulative value of transactions for all the types of financial instruments to exceed RON 10 billion in the first seven months.

 

  • The capital market reached record values in July: over 12,000 points for the BET index and over 21,000 points for the BET-TR index.

 

  • The increase posted by the capital market was 25% in the first 7 months for BET-TR index and 20% for BET index.

 

  • Radu Hanga, BVB President:
    • The Romanian stock exchange is like an investment mall: the same platform now hosts a much wider range of companies and offers exposure to new sectors.
    • We have managed to overcome the dilemma engulfing the stock market for so many years: if we need more investors or more companies first.

 

  • Adrian Tanase, BVB CEO:
    • A strong capital market has a positive impact on the economy. Economic growth can be sustained and accelerated through the stock market.
    • We have very good premises to consolidate our status as an Emerging Market and we want Romanians to invest much more in the Romanian economy.

 

The investors intensified their trading activity on the Bucharest Stock Exchange (BVB) in the first 7 months of this year, which pushed the cumulative value of transactions for all types of financial instruments to exceed RON 10.4 billion, the equivalent of EUR 2.1 billion. This level corresponds to a growth rate of 56.6% compared to January-July last year. Breakdown by asset classes, the total transactions performed on the Regulated Market on the equity segment accounted for RON 5.8 billion, and for RON 4.2 billion on the bonds segment. The total trading value for structured products was RON 411 million, and RON 21 million lei for fund units, at the end of the first 7 months.

The average daily liquidity for all types of financial instruments increased by 55.4% in the first seven months compared to the same period of the previous year, from RON 46.1 million lei (equivalent to EUR 9.6 million) to RON 71.6 million (equivalent to EUR 14.6 million). Breakdown by types of financial instruments, the equities generated an average daily liquidity of approximately RON 40 million, fixed income instruments – RON 29 million, while RON 3 million was the daily turnover on the segment of structured products and fund units.

During July, the capital market continued to rise and reached new record values. In the trading session of July 14th, BET index reached the level of 12,055 points for the first time in history. At the end of the same session, BET-TR index displayed a record level of 21,002 points. Until the end of July, the market retreated slightly but remained in the area of all-time highs. In such a context, the evolution of the capital market has brought investors significant potential upside. Thus, the growth posted by the capital market was 25% in the first 7 months for the BET-TR index and 20% for the BET index.

“The Romanian stock exchange is like an investment mall: the same platform now hosts a much wider range of companies and offers exposure to new sectors that have been absent from the capital market or that have been underrepresented. The result is that the attractiveness of the stock market has increased, both for issuers and investors. We have managed to overcome the dilemma engulfing the stock market for so many years: if we need more investors or more companies first. The answer given by the market is that once the listings went more smoothly, investors started to appear. It is essential, however, to look at this phenomenon in the context in which the capital market has reached new all-time highs every month, and the prospect of rising inflation has led more and more Romanians to find more efficient channels for their savings,” said Radu Hanga, President of the Bucharest Stock Exchange.

“A strong capital market has a positive impact on the economy. Economic growth can be sustained and accelerated through the stock market as the financing of Romanian companies is provided more often and consistently by the mechanisms of the capital market. We have very good premises to consolidate our status as an Emerging Market and we want Romanians to invest much more in the Romanian economy. For this, it is necessary for the listing trend to continue and all market participants, together with BVB, make efforts for this phenomenon of accelerated listings to become normality on the local stock exchange,” stated Adrian Tanase, CEO of BVB.

The investment activity at BVB continued its ascending course in the first part of the 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.

The capitalization of the local companies listed on BVB has gone above the pre-pandemic level. Thus, the Romanian companies listed on the Main Market of BVB have reached a market value of almost RON 126 billion or EUR 25.6 billion.