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 the week. The content of this review is for informational purposes only and should not be interpreted as specific investment advice.
On Monday, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), climbed 0.08% to 10,882.98 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also rose 0.08% to 18,331.55 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, dropped 0.15% to 48,130.57 points. The BETPlus index grew 0.07%, to 1,627.31 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 400 million lei (EUR81.8 million) on Monday selling treasury bonds maturing in November 2024 at an average yield of 2.4%, National Bank of Romania (BNR) data showed. Meanwhile, individual investors bought RON1.4 billion million worth of Fidelis government bonds for the general population in the three-week subscription period ended Friday, March 19.
On Tuesday the BET index decreased by 0.17% to 10,864.39 points. The BET-TR also weakened 0.17% to 18,300.24 points. The BET-FI index dropped 0.53% to 47,877.41. The BETPlus was down 0.14% to 1,625.00 points.
In banking news, private lending in the country grew 0.7% in nominal terms and 0.3% in real terms in February m-o-m, to RON285.543 billion, according to BNR data.
On Wednesday the BET index was off 0.12% to 10,851.60 points while the BET-TR was also lower by 0.12%to 18,278.69 points. The BET-FI index decreased by 0.67% to 47,556.38 points. The BET Plus was down 0.13% to 1,622.84 points.
In economic news, last year Romania’s government approved EUR170 million state aid for 30 projects. This year, Banca Transilvania expects the country’s gross domestic product (GDP) to grow by 5%, productive investments by 6.4% and private consumption by 5%. For 2022, the lender sees the country's economy growing 6%.
On the construction front, Romania's cement market went up 10% to EUR630 million in 2020,
according to representatives of the local cement industry companies association CIROM, based on data from the National Institute of Statistics (INSEE).
On Thursday the BET index gained 0.90% to 10,949.06 points while the BET-TR also climbed 0.90% to 18,442.86 points. The BET-FI index declined 0.12% to 47,611.67 points. The BETPlus grew 0.87% to 1,636.97 points.
In fixed income markets, Romania on Thursday raised RON420 million (EUR86 million), selling bonds maturing in October 2027 at an average yield of 2.81%, BNR data showed.
On the macro front, nearly 70% of analysts polled by CFA Romania see inflation rate growing to an average of 3.29% over the next 12 months, while over 87% estimate the Romanian leu will depreciate against the euro, to an average of 4.97 units over the same horizon.
In business news, the combined value of Romania’s top 50 brands dropped 3.7% in 2020, to EUR5.6 billion. However, it was almost 50% higher compared to 2017, when the first Brand Finance Romania ranking was published. Romania's insurance market grew 4.6% in 2020 y-o-y, with companies reporting total underwritings of RON11.5 billion, the country's financial regulator said in a report.
On the real estate front, CBRE's Romania Industrial Destinations research report shows that modern industrial space stock is expected to reach 5.5 million Sqm in 2021, with over 60% of the area under construction being pre-leased already.
On Friday, the BET index advanced 0.11% to 10,961.65 points while the BET-TR added 0.12% to 18.464.07 points. The BET-FI index rose 0.45% to 47,828.30 points. The BETPlus was up 0.09% to 1,638.48 points.
In fixed income markets, Romania's finance ministry has raised Eurobond issuance cap to EUR46 billion from EUR41 billion to cover the country's financing needs this year.
On the macro front, Romania's unemployment rate stayed at 5.2% in the last quarter of 2020, data from INSEE showed.
In other news, the hotel market in Romania could start recovering in the second half of 2021, supported by a pick-up in international travel, according to a Colliers International report.
(BVB's BET index performance Friday 19/03/2021 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
- Romgaz plans to pay RON690 million in dividends subject to shareholder approval on April 27.
- TeraPlast has summoned its shareholders on April 28 to approve to appoint Lucian Anghel as interim director until Sept 2021.
- Transelectrica seeks to pay RON60 million in dividends subject to shareholder approval in a general meeting on April 27.
- MedLife is in advanced talks to sign a new syndicated loan of EUR40 million to fund its expansion.