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 19 companies except for the Financial Investment Companies (SIFs), was unchanged to 12,832.89 points.
The BET-TR index, which also includes the dividends offered by the companies from the BET index, was off 0.01% to 22,709.92 points.
The BET-FI index which tracks the five SIFs and the property restitution fund Fondul Proprietatea, rose 0.36% to 52,038.20 points.
The BETPlus Index which tracks the price changes of Romanian companies listed on BVB’s Regulated that minimum selection criteria of liquidity and free float, was up 0.05% to 1,916.94 points. Financial investment companies are excluded from the index.
Of note, financing rounds unfolded through BVB exceed EUR 1.5 billion in the first 10 months of 2021.
On the macro front, Romania's current account gap widened to EUR11.5B in January-September 2021, compared with a deficit of EUR7.8 billion during the same period in 2020, National Bank of Romania (BNR) data showed.
On Tuesday, the BET index was down 0.04% to 12,828.21 points. The BET-TR also declined 0.04% to 22,701.62 points. The BET-FI index increased by 0.18% to 52,130.20 points. The BET Plus was off 0.04% to 1,916.25 points.
On the macro front, the Romanian gross domestic product grew 7.2% year-on-year in the third of 2021, easing sharply from a 13.9% expansion in the previous period and missing market expectations of a 9.8% growth, National Institute of Statistics (INS) data showed.
Meanwhile, Romania’s national commission for prognosis and statistics kept its projections for the country’s GDP growth at 7% this year, but revised it downwards for 2022, at 4.6%, from 4.9% in its summer forecast.
In auto industry news, Romania's car production fell 6.5% to 333,179 vehicles in the first ten months of 2021, down 6.5% compared to same period in 2020, data from the country's carmakers association ACAROM showed.
On Wednesday the BET index dropped 0.51% to 12,763.40 points while the BET-TR was lower by 0.51% to 22,586.14 points. The BET-FI index added 0.19% to 52,228.22 points. The BET Plus weakened 0.47% to 1,907.21 points.
On the macro front, Romania's Q3 2021 economic advance was the highest in the EU, according to Eurostat.
Seasonally adjusted GDP increased by 8% y-o-y in Romania, while the EU average was 3.9%
In real estate news, the Covid-19 crisis has intensified the migration of a large part of Romania’s population from urban to rural areas, a trend that will maintain on the medium term a Colliers analysis has found.
On Thursday, the BET index depreciated by 0.09% to 12,752.02 points while the BET-TR also fell 0.09% to 22,565.94 points. The BET-FI was off 0.16% to 52,143.32 points while the BETPlus lost 0.14% to 1,904.52 points.
In fixed income markets, Romania's Ministry of Finance is carrying out a new public offer for the sale of Fidelis government bonds for individual investors on Bucharest Stock Exchange, between November 18 and December 10.
Separately, Romania's finance ministry reopened a bond issue due in July 2029 and raised RON544.3 million from banks on Thursday, above the targeted level of RON400 million, at an annual yield of 5.26%, BNR data showed.
In labor market news, the number of job vacancies in Romania stood at 47.300 in Q3 2021, up by 7.700 compared to the previous quarter, INS data showed.
In credit news, half of the Romanians have debts, and 77% do not feel the moral pressure to pay them on time, a new study by Kruk Romania revealed.
On Friday, the BET index fell 1.51% to 12,559.61 points while the BET-TR declined 1.50% to 22,227.10 points. The BET-FI was down 0.84% to 51,705.29 points. The BET Plus was off 1.49% to 1.876.13 points.
In politics, Romania is still trying to cobble together a government and
the Romania's leu is one of the eight worst performing world currencies this month.
(BET index performance on Friday 19/11/2021 Source: BVB)
BET INDEX CONSTITUENTS
Below are the 19 companies that are part of the BET and BET-TR indices:
1.Alro (ALR) one of the largest vertically integrated aluminium producers in Europe.
2. Banca Transilvania (TLV), the first Romanian bank listed on the BVB and Romania's largest lender by assets.
3. BRD Groupe Societe Generale (BRD), the third largest bank in Romania by assets whose majority shareholder is France's Societe Generale,
4. Bucharest Stock Exchange (BVB) the parent company of the Bucharest Stock Exchange
5. Conpet (COTE) the operator of the National Transport System of crude oil via pipelines.
6. 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.
7. Electrica (EL), the biggest electricity distributor and supplier in Romania.
8. Fondul Proprietatea (FP) a joint stock company operating as an Alternative Investment Fund.
9. MedLife (M) one of the largest private medical operators in Romania.
10. OMV Petrom (SNP), the largest oil and gas group in Southeastern Europe.
11. Nuclearelectrica (SNN) , the state-owned operator of Romania's sole nuclear power plant,
12. One United Properties (ONE), one of Bucharest’s most dynamic developers of housing, office and mixed projects.
13. Purcari Wineries (WINE), the largest wine exporter from Moldova.
14. Romgaz (SNG), Romania’s largest natural gas producer and supplier.
15. Sphera Franchise Group (SFG) a holding company which manages restaurants under the KFC, Pizza Hut and Taco Bell brands.
16. TeraPlast (TRP) the largest Romanian producer of construction materials.
17.Transgaz (TGN) the Romanian state-controlled gas transporter.
18. Transelectrica (TEL), electricity transmission system operator.
19 .Transport Trade Services (TTS), river/maritime and land transport of bulk and packed commodities goods, handling of goods and equipment in Danube ports and Constanta, door to door transportation.
BET INDEX CONSTITUENTS NEWS
- Purcari's net profit stood at RON39.8 in the first nine months of the year, up 55% compared to the same period a year ago.
- Sphera Franchise Group in Jan-Sept 2021 reported profit worth RON28 million, compared to a RON4.7 million net loss in the same period a year afo, while its restaurant sales stood at RON728.7 million, up 45%.
- Fund Fondul Proprietatea ended the first nine months of 2021 with a net profit of RON3.1 billion, of which RON1.3 billion was registered in the third quarter of 2021.
- Hidroelectrica's net profit doubled to RON2.6 billion in the first nine months of 2021, compared to the same period a year ago.The company is in talks for a 2,000 MW wind and solar power project portfolio, the biggest portfolio of renewable power projects underway in Romania.
- Conpet's net profit stood at RON42 million in the first nine months of 2021, up 14.2% y-o-y, while turnover was up 3.1% to RON313.3 million.
- Romania’s Competition Council has approved Nuclearelectrica’s acquisition of uranium concentrate processing line at the Feldioara Branch from the National Uranium Company.