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Bucuresti Stock Exchange: the regulated market of the stock exchange had total tradings of 4.66 billion lei in the Q1
The total value of tradings with all types of financial instruments increased by 30.4% in the first three months of this year against the similar period of last year, and on the Regulated Market of the Stock Exchange Bucuresti (BVB) there were total tradings of 4.66 billion lei. The Stock Exchange announced on Monday that the BET and BET-TR indicators are at historic maximum and increased over the last year by 50% and the capital market could become the second source of income after the salaries.
‘The total value of the tradings with all types of financial instruments increased by 30.4% at the end of the first three months of this year as compared to the similar period of last year.On the Regulated Market of BVB there were total tradings of 4.66 billion lei. At the level of the Q1, the average daily liquidity with all types of financial instruments was situated at 74 million lei ( 15.2 million euro) up by 28.4% as compared to Q1 of the previous year’ the stock exchange said.
The investment activity of BVB continues the increasing trend in the first part of the year 2021, after the record results obtained in 2020 when the investors present on the Stock Exchange traded financial instruments worth 18.3 billion lei, the equivalent of 3.77 billion euro. It was the highest annual value ever recorded on the main segment of the Romanian stock exchange and surpassed by almost 25% the previous record mentioned in 2007.
‘The capital market in Romania gets success after success this year as the investors present on the Stock Exchange Bucuresti (BVB) contributed to the growth of the market to new historic maximum. The BET reference indicator and its equivalent including dividends, BET-TR reached new historic maximum at the end of Q1 this year. For the first time in the history of 23 years of BET surpassed the threshold of 11,000 points.More exactly, in the last meeting of trading in March, BET presented a level of 11,189 points. The BET-TR indicator which includes the dividends offered by the companies in BET reached new record levels and continued the rally towards 19,000 points. In the trading session of 31st March reached the highest level since the beginning : 18,848 points’ BVB shows.
In the first three months of this year, BET and BET-TR increased with over 14%. Over the last twelve months, the growth was 46.7% for BET and for BET-TR of 54.4%.
‘The capital market could become the second source of income after salaries. Who invests monthly a part of the salary can manage to have the equivalent of the 13th salary from the yields and dividends offered by the companies listed on the stock exchange, obviously depending on the percentage of the salary which is invested and depending on the annual performance of the market. On a long run, a constant investment behaviour will lead to get financial independence in a quicker and more realistic way. Not to be present as an investor on the capital market is as if you refuse a salary increase, and in the future and on the long run such an absence is even dearer.For the companies, access to capital is a normal consequence of the presence on the stock exchange, but the benefits of listing are many and at different levels: transparency, corporate governance, evaluation of the business dictated by the market, increased publicity among investors and in the mass-media, an increased degree of trust among the business partners. To be a listed company represents a public acknowledgement of the performance of the management and allows the stimulation of the performance of the employees by offering shares through the programmed stock option plan’ stated Radu Hanga, the chairman of the Board of the Stock Exchange Bucuresti.
The representatives of the stock exchange say that there is an increased interest for the domestic capital market.
‘We are at historic maximum and we see that there is an increased interest for the domestic capital market, both on the part of the institutional investors and on the part of individuals. From the point of view of trading multiples, Romania is one of the cheapest markets, and the dividends offered make our market even more attractive. The new records reached by BET and BET-TR represent validation given by investors that we experience coming back as regards business performance of the listed companies, but there are also other important indicators through which the stock exchange activity can be interpreted. The growth of liquidity represents an essential objective for development, we are registering growth of the traded values on all instruments this quarter, but the improvement of the liquidity conditions, especially on the sector of shares, is one of the main priorities of the Bucharest Stock Exchange’ said Adrian Tanase, general manager of BVB.