Romanian capital market gives positive returns to investors despite external turmoil

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Bucharest Stock Exchange (BVB) managed to stay afloat at the end of the first eight months despite external turmoil, which sent several markets in negative territory amid growing international uncertainty. Global indices provider Morgan Stanley Capital International (MSCI) reveal world markets plummeted abruptly from the beginning of this year. MSCI indices fell sharply, in USD-equivalent, as Emerging Markets went down by 8% and Frontier Markets by 15% at the end of the first eight months.

By contrast, in the same period, BET – the main index of the Bucharest Stock Exchange – surged by 4.4% USD-equivalent, while BET-TR – the index including also the dividends – trebled to 13% USD-equivalent.

We pay attention to external developments because markets are highly interconnected today. Even in an international environment experiencing volatility and turbulence, Romania is still able to deliver positive returns to investors. That is why we want to diversify and develop the local market by offering new opportunities and trading instruments so that the investment activity becomes more effervescent. The local capital market has the potential to greatly increase liquidity, and this could also translate into a presumably better evaluation of listed Romanian companies,” said Adrian Tanase, CEO of BVB.

The upward trend of the Romanian stock market can be explained by the performance most issuers had reported. The results reside in the positive evolution of the companies listed on the BVB, as they managed to benefit from the strong growth of the economy and registered half-year operational results generally superior to those from last year, while also giving consistent dividends“, stated Lucian Anghel, President of the Board of Governors of BVB.

The total value of the financial instruments traded on BVB exceeded EUR 1.8 billion in the first eight months, slightly down from the same period last year. The average daily trading value for equities amounted to EUR 8.7 million as investors’ activity slowed down during the summer season.

The stock market capitalization of Romanian companies amounted to over EUR 20 billion at the end of the first eight months, while the capitalization of all listed companies on the Main Market of BVB exceeded EUR 35.7 billion.

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