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Bucharest Stock Exchange Weekly Review 01-05/02/2021

posted onFebruary 6, 2021
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Every Saturday, Investopress brings you a weekly market review of the Bucharest Stock Exchange (BVB), along with key economic, political, business and other important Romanian market moving news of theweek. The content of this review is for informational purposes only and should not be interpreted as specific investment advice.

01/02/2021
On Monday, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), advanced 0.83% to 10,392.06 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also added 0.83% to 17,496.35 points. 

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, grew 0.18% to 45,210.53 points. The BETPlus index rose 0.82%, to 1,551.33 points. BETPlus tracks the price changes of Romanian companies listed on BVB’s Regulated Market that meet minimum selection criteria of liquidity and free float. Financial investment companies are excluded from the index.

In fixed income markets, Romania raised RON1.022 billion (EUR209.7 million) selling bonds maturing in November 2024 at an average yield of 2.06%, National Bank of Romania (BNR) data showed. 

In currency trading, Romania's foreign exchange reserves stood at EUR37.454 billion at the end of January. At the end of 2020 they stood at EUR37.379 billion, according to BNR data. 

On the macro front, Romania's unemployment rate fell to 4.9% in December 2020, the National Institute of Statistics (INSEE) data showed. 

In automotive news, new vehicle registrations in Romania were down 46.8% in January, y-o-y,  the Automotive Manufacturers and Importers Association (APIA) said.

02/02/2021
On Tuesday the BET index ticked down 0.01% to 10,390.80 points while the BET-TR also ticked down 0.01% to 17,494.72 points. The BET-FI index gained 0.79% to 45,568.88 The BETPlus added 0.02% to 1,551.69 points. 

03/02/2021
On Wednesday the BET index was unchanged to 10,390.68 points while the BET-TR was also unchanged to 17,495.02 points. The BET-FI index lost 0.69% to 45,254.73 points. The BET Plus ticked up 0.01% to 1,551.88 points. 

On the banking front, 2020 was the first time in eight years when a decline for new retail loans was registered, BNR data showed. New consumer and mortgage loans in lei and euros dropped by some RON2.7 billion or 7% from the 2019 level to RON34.3 billion in 2020.

On the banking front, Romanian banks may post RON58B drop in revenue after risk costs by 2025, compared with revenues expected had the Covid-19 never happened, due to risk costs and decreased volumes, according a research by McKinsey&Company. 

In real estate news, Romania registered 48,736 real estate deals in January, 28,619 fewer than in December 2020, data from the national cadaster agency ANCPI showed.

04/02/2021

On Thursday the BET index moved up 1.10% to 10,504.65 points while the BET-TR also rose 1.10% to 17,687.39 points. The BET-FI index moved up 0.70% to 45,571.60 points. The BETPlus was up 1.06% to 1,568.36 points. 

In fixed income markets, Romania raised RON1.4B (EUR290.3 million), selling October 2027 bonds at 2.39% average yield, and 716.5 million lei (EUR147 million) selling one-year treasury bills at an average yield of 1.67%, BNR data showed. 

On the banking front, new corporate loans in lei reached a 14-year monthly high in December 2020. 

Meanwhile, the European Central Bank (ECB) and the BNR have agreed to extend until March 2022 a framework arrangement to provide liquidity in euros to the Romanian central bank via a repo line of up to EUR4.5 billion, the BNR announced. 

In business news, U.S. electric car maker Tesla opened its first office in Bucharest. The American company reportedly plans to install Supercharger stations in four Romanian cities this year. 

In real estate news, Romanians are the most determined and quickest Europeans when it comes to choosing a home to buy, with three out of five saying they found their home in three months at most, a survey conducted by ING showed. Deliveries of modern retail space this year will amount to about 60,000 square meters, down 50% compared with 2020, Cushman & Wakefield Echinox said. 

05/02/2021
On Friday, the BET index rose 1.05% to 10,614.85 points while the BET-TR also advanced 1.05% to 17,873.08 points. The BET-FI index gained 1.35% to 46,187.37 points. The BETPlus was up 1.03% to 1,584.51 points. 

In fixed income markets, Romania's finance ministry is set to launch three new bond issues for the general population on Feb. 8, which can be subscribed by Feb. 24. 

Bucharest Stock Exchange BET index

(BVB's BET index performance Friday 05/02/2021 Graph Source: BVB)

BET INDEX CONSTITUENTS

Below are the 17 companies that are part of the BET and BET-TR indices:
Alro (ALR) one of the largest vertically integrated aluminium producers in Europe.
Banca Transilvania (TLV), the first Romanian bank listed on the BVB and Romania's largest lender by assets.
BRD - Groupe Societe Generale (BRD), the third largest bank in Romania by assets whose majority shareholder is France's Societe Generale,
Bucharest Stock Exchange (BVB) the parent company of the Bucharest Stock Exchange
Conpet (COTE) the operator of the National Transport System of crude oil via pipelines.
DIGI Communications N.V. (DIGI) the parent company of RCS & RDS-one of the biggest telecommunication operators in Central and Eastern Europe and the largest cable and satellite television company in Romania.
Electrica (EL), the biggest electricity distributor and supplier in Romania.
Fondul Proprietatea (FP) a joint stock company operating as an Alternative Investment Fund.
MedLife (M) the largest private medical operator in Romania.
OMV Petrom (SNP), the largest oil and gas group in Southeastern Europe.
Nuclearelectrica (SNN) , the state-owned operator of Romania's sole nuclear power plant,
Purcari Wineries (WINE), the largest wine exporter from Moldova.
Romgaz (SNG), Romania’s largest natural gas producer and supplier.
Sphera Franchise Group (SFG) a holding company which manages restaurants under the KFC, Pizza Hut and Taco Bell brands.
TeraPlast (TRP) the largest Romanian producer of construction materials.
Transgaz (TGN) the Romanian state-controlled gas transporter.
Transelectrica (TEL), electricity transmission system operator.

BET INDEX CONSTITUENTS NEWS

  • Banca Transilvania and BRD made it to the 2021 edition of the global ranking of 500 most valuable banking brands, compiled by Brand Finance. The two Cluj-Napoca headquartered lender  climbed to the 302nd spot while BRD fell to the 470th spot.
  • Conpet Ploiesti plans to distribute 85% of its profit as dividends in 2020-2022, according to its published dividend policy. The state-controlled oil transporter also announced it has appointed Dorin Tudora to the position of provisional Chief Executive Officer, effective from Feb 5 until the completion of the recruitment and selection procedure for the new CEO, respectively, until June 4, 2021.
  • OMV Petrom Group ended 2020 with sales revenue of RON19.7 billion, down 23% versus 2019, following negative evolution of the commodity prices and lower sales volumes for petroleum products and electricity, and a net profit of RON1.29 billion, down 64% from 2019, according to the earnings report. The Group's Executive Board proposes gross dividend of RON0.031/share from 2020 profit, the same as for the financial year 2019.