Romanian stock exchange, too small for Brexit crash. The total value of transactions on BVB fell by 28 pc in Q1

The value of share transactions performed on the Bucharest Stock Exchange (BVB) in the first six months of this year increased by 6.5 percent, to RON 4.36 billion, accounting for almost 90 percent of total transactions performed on the stock exchange in the first half of the year, according to the Report on stock market evolution in H1of 2016, approved by the Financial Supervisory Authority (ASF).

At the same time, investors have shown a growing interest for transactions with structured products, their volume increasing by over 11 percent compared to H1of 2015, to RON 232.7 million. The share of structured products in total transactions advanced to almost 5 percent, compared to 3.1 percent in 2015.

However, overall, the total value of transactions on the stock market in the first six months fell 28 percent compared to the first half of 2015, limiting to RON 4.88 billion, amid a decrease by about 92 percent in bond transactions and halved transactions with government securities and fund units.

The traded volumes recorded extensive variations, from a low of RON 529 million in February to a high of RON 1.13 billion reached in April.

In this context, the general indices of the stock exchange had negative evolutions in the first half, amid the sharp decline in oil prices and turmoil in the international capital markets. The most significant decrease was recorded by the ROTX index, developed by BVB together with the Vienna Stock Exchange, which plunged 12.13 percent compared to the end of 2015. The BET index fell 7.58 percent.

For Q1, the most liquid company listed on BVB was Banca Transilvania (TLV), which exceeded the threshold of RON 1bn through 43,780 transactions, followed by Romgaz (SNG), with transactions worth RON 988 million, both issuers having a share of over 23 percent in terms of value traded in H1 in the main market (only shares). Fondul Proprietatea (FP) ranked the third, with a share of over 17 percent, followed by Electrica (EL) and BRD Group Société Générale (BRD).

On SIBEX market, the first half saw a halving of the value of transactions with futures contracts, to RON 64.3 million, while the number of contracts concluded fell by almost 35 percent, to 5,816.