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Launch of the Fidelis Centenar T-bonds and the MedLife private IPO are the most important events în 2016
The earmarking of the Romanian capital market on the emerging market status's trajectory, the launch of the Fidelis Centenar T-bonds and the MedLife private IPO are the most important events that have taken place on the stock exchange's market in 2016.
Likewise, the Bucharest Stock Exchange (BVB) has launched a new financial instrument, namely the warrants.
On the other hand, 2016 has witnessed no state-run companies' listings at the BVB.
The transactions' total value on the BVB main segment slightly grew this year, by 3.6pct as compared to 2015, to over 9.122 billion lei (rd 2.027 bln euro), as the BVB data read. As for the alternative trading system, the transactions have soared by 128pct to 206.8 million lei.
The most traded companies in 2016 were Banca Transilvania with 2.18 billion lei, followed by Fondul Proprietatea with 1.38 billion lei and Romgaz by 871.9 million lei. The 4th and 5th spots are held by OMV Petrom and Electrica with 501 million lei, 488.2 million lei, respectively.
The total amount of transactions on 2016 at the BVB is above 11.1 billion lei, with over 950,000 transactions. The average daily value was over 44.9 million lei.
A new stocks' instrument: the warrants
On 7 June, the BVB opened its trading session with a new instrument - the warrant - issued by financial bodies, which is based on financial instruments or other assets, on whose evolution it depends, according to the information published on the BVB website.
The BVB managing director, Ludwik Sobolewski said they are instruments that are offering the investors a right to shares at a price point.
The Fidelis Centenar T-bonds on the stocks
On 5 August, the T-bonds issued by the Public Finance Ministry (MFP) within the "Fidelis Centenar" programme have begun to be traded. The moment was marked by an official opening attended, among others, by Prime Minister Dacian Ciolos, the Finance Minister, Anca Dragu, and the president of the Financial Supervisory Authority (ASF), Misu Negritoiu.
MFP has drawn 735 million lei through this T-bonds issuance, seven times more that the 100-million lei offer initially announced. In the three-week offer, as many as 20,185 individuals have bought T-bonds, 16 times more than in 2015.
Ever since 5 August until now transactions of over 5 million lei were concluded through 404 operations. The maximum price was reached on 12 September, of 102 lei/title.
The Romanian capital market on its way to Emerging Market
According to a decision by FTSE Russell, published on 29 September, the capital market of Romania was included on the list of the countries that represent a substantial potential to climb to emerging market status on the short or medium-term. In the case of Romania, updating will very much depend on the progress recorded as regards the market liquidity and the presence of the large companies with significant individual trading values.
The BVB Board's head, Lucian Anghel used to say at the time that "by including Romania in the Watchlist and implicitly its entering into the trajectory of the emerging markets destination id one of the defining, momentous events in Romania's entire capital market's history."
In his turn, the BVB managing director, Ludwik Sobolewski drew attention on the fact that there still are significant issues that must be resolved and hoped that "the pace of this process, considering that the BVB often needs the constructive cooperation of other bodies, would be rapid.
In an interview with AGERPRES, he said that Romania has the chance to be promoted from the border market category to the emerging markets once the Hidroelectrica gets listed on the Romanian capital market.
This listing never happened in 2016...
First private Initial Public Offering (IPO) on the stocks, after almost a decade
The date of 21 December has marked the coming into trade of the MedLife shares with the 'M' symbol, after the offer was being oversubscribed.