The main index of BVB has lately increased on improved macroeconomics, dividends and corporate financials
The main index of the Bucharest Stock Exchange (BVB), the BET, has lately increased on improved macroeconomics, dividends and corporate financials, BVB Chairman Lucian Anghel told AGERPRES on Wednesday.
"We are talking about an increase in BET of over 10 percent since the beginning of the year. This can arguably be the best year start in many years. I believe there are several reasons for that. Firstly, the prospects for Romania's macroeconomics late this year are excellent, as the country's economic growth is expected to exceed by far the EU average. Secondly, I believe it is also because the dividends in Romania are at the highest level of all the world's main companies, as some analyses indicate: there are companies that will pay dividends of more than 10 percent in some months' time, after the conventions of their general shareholders' meetings," said Anghel.
He added that companies have reported excellent 2016 financials, which boosts investors' belief that positive developments in these stock prices will continue.
"These add up to last year's BVB investors having invested in the best performing ten companies making up the BT, for yields of about 10 percent; in two months' time they make the same or even more than last year. The past is no guarantee for future developments, meaning the investments can generate some risks, but in terms of yield rates, we talk about more than 30 percent over the past years," Anghel explained.
The BET index of the best performing ten stocks traded on BVB continued to increase on Wednesday morning, to 7,975 points, twenty minutes into the trading session, which was the highest it has been in over nine years.
The BET index was up 0.79 percent from Tuesday's closing. BVB officials had told AGERPRES that the highest value on Tuesday, of 7,921 points, was the 20th highest ever recorded by BET.
The highest value, of 9,735.67 points, was recorded on January 4, 2008. So far this year, the index has advanced 12.56 percent.