RSS
The number of BVB transactions has increased by 9% in 2022
The total traded value on the regulated market and SMT (the multilateral system of trading) has surpassed the level of 24 billion lei in 2022, up by 11% as compared to 2021, while the number of transactions at the BVB has increased by 9%.
According to a report of the Authority for Financial Supervision (ASF) approximately 97% of the total value of transactions took place on the regulated market of BVB, the rest being on SMT.
‘In 2022, the value of transactions with state securities was 3.65 billion lei up by 12% against 2021. The shares are the dominant type of financial assets with a share of 57% of the total of the values traded at BVB in 2022’ the ASF reports says regarding the evolution of the capital market in 2022.
According to the quoted source, the market of sovereign bonds continued its trend to growth of yields started in 2021, taking into consideration the high inflation and the estimates of later growth.
‘This dynamics led to excess levels at the onset of the pandemic. If at the end of 2021, the yield for national government bonds with a maturity of 10 years was 5.27%, at the end of 2022 it reached a point of 8.37%. The simulations show that in the absence of other exogenous shocks caused by the intensification of macroeconomic risks, the yields of state securities could increase to a maximum of 9%-10% depending on the economic situation.’
According to ASF, the increase of inflation by 0.7% (1 standard deviation) leads to increase in yields of the state bonds (maturity 6 months) by 1.7% during a period of ten months and by 1.83 for the state bonds with maturity of one year.
‘An interval of trust for the estimate at trust degree of 95% was built. The fact that there are few fund bonds at the interest rate risk, namely those with modified duration of over four years’ the report says.
According to ASF, the indicators of the Romanian stock exchange registered negative evolutions at the end of 2022 as compared to the end of 2021.
‘The BET key indicator (which includes the evolutions of the most traded companies on the regulated BVB market) had a drop of 10.70% on 31st December 2022 as compared to the end of 2021’ ASF says.
Similarly, the BETAeRO indicator which reflects the evolution of the representative companies on the SMT market selected depending on the liquidity and free-float capitalization criteria, registered the most important drop, of 22.23%.
The stock exchange capitalisation on the regulated market reached the level of 197.18 billion lei, dropping by approximately 14% as compared to the end of 2021, due to the geopolitical and deteriorated macroeconomic context.
At the end of 2022, on the regulated market managed by BVB there were active a total number of 27 intermediaries, out of whom 17 Societies of services of financial investigation (SSIF), three institutions of local credit and seven entities authorized in other EU member states.
At the same time, in the SMT there were a total number of 20 intermediaries, out of which 16 SSIF, three institutions of local credit and a company of authorized investments in another EU member states.
‘The most active intermediaries on BVB (the regulated market and SMT) were the SSIFs, the working value was approximately 25.8 billion lei. The local intermediaries (SSIF and credit institutions) made approximately 91% of the total value. Out of the authorized intermediaries in other EU member states who had transactions on the spot markets, the most active were the investments companies, getting a share of the market of 5.98%’ the report says.
The total value of the assets of the collective investment undertakings (OPC) in Romania on 31st December 2022 was approximately 42.47 billion lei, dropping by almost 15% as compared to the end of the previous year.
At the end of 2022, in Romania there were active 17 administrators out of whom 6 authorised exclusively as societies for the management of investments (SAI), two authorized exclusively as administrators of alternative investment funds (AFIA) and nine with double authorization. Similarly, there were authorised 89 bodies of collective investment in securities (OPCVM), 36 alternative investment funds (FIA) which include the six investment companies (SI) and the Proprietatea Fund.
Similarly, at the end of last year, a number of 296 individual investment accounts were managed by two SAI, the total value of the assets being approximately 634 million lei, dropping by 11% against the value at the end of 2021.
The dominant category out of the total of administrators continues to be the banking groups, which control the largest part of the cumulated total of assets administered by SAI. In Q4 the investment funds registered the best yield of 2022 reported to assumed risk.
‘In 2022, the evolution of the international financial markets was influenced by the high degree of uncertainty which characterized the geopolitical and macroeconomic context, as a result of the war in Ukraine, increase of inflation rates as well as of the situation in China’ the report says.