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BVB: Romanian companies eye double growth compared to US, European companies Jan-Sep
The Romanian capital market grew in the first nine months by 29% in terms of the BET index and by 35.6% in terms of the BET-TR index, which also includes dividends, according to a press release of the Bucharest Stock Exchange (BVB) submitted on Thursday.
The US S&P 500 index rose 14.7% over the same period, and the European STOXX600 rose 14%.
At the same time, the value of transactions with all types of financial instruments listed on the Bucharest Stock Exchange (BVB) reached 13 billion lei, + 4.2% compared to the first nine months of the previous year.
"The Romanian capital market registered significant growth in the first nine months of the year, and the companies listed on the Bucharest Stock Exchange (BVB) managed to obtain important performances in relation to other developed markets. These results were obtained in an ambivalent context: on the one hand, the uncertainties generated by the coronavirus pandemic and the estimates regarding an accelerated increase in inflation intensified, and on the other hand, the Romanian capital market stood out through 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 13 billion lei, equivalent to 2.6 billion euro, up 4.2% from the first nine months of the previous year," the press release said.
In such a context, the main BET index advanced by 3.8% only in September, and the BET-TR index, which includes dividends, increased by 4.5% over the same period. After the first nine months, the increase in the BET index was 29%, and in the BET-TR index it was 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 doubling higher compared to the American S&P 500 index (+ 14.7% ) or with the European STOXX600 (+ 14%). The Romanian market also outperformed in relation to 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 MSCI Frontier Markets GR (+ 19.2%).
In his turn, Adrian Tanase, CEO of BVB, specified that, in October, the first index will be launched for the AeRO segment and another 2 indices for the Regulated Market.
"We are continuously developing the capital market organically and sustainably: we have approved the inclusion of two other companies in the BET index, which now has 19 issuers; in October, we launch the first index for the AeRO segment and 2 more indices for the Regulated Market; we have simplified market access for the companies that are listed on the alternative segment from 2022. We position Romania as an attractive capital market in the region, and the Romanian companies are gaining more and more exposure in international indices," underscored Adrian Tanase.
Romanian companies have become increasingly visible on the radar of international investors. Starting with 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, the Bucharest Stock Exchange continues its development efforts and, starting with October 11, 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.
At the same time, in order to boost the current trend characterized by accelerated listings of financial instruments, BVB approved the simplification of the listing procedure on the multilateral trading segment of BVB, a procedure that will enter into force at the beginning of next year.