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Bucharest Stock Exchange Weekly Review 27/09-01/10/2021

posted onOctober 1, 2021
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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.

27/09/2021

On Monday, the benchmark BET index, which includes the most traded 19 companies except for the Financial Investment Companies (SIFs), gained 0.56% to 12,510.26  points. 

The BET-TR index, which also includes the dividends offered by the companies from the BET index, also rose 0.56% to 22,141.74 points.

The BET-FI index which tracks the five SIFs and the property restitution fund Fondul Proprietatea, advanced 0.27% to 53,135.73 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 higher by 0.53% to 1,867.15 points. Financial investment companies are excluded from the index. 

In currencies, a monthly poll by CFA Romania showed that financial analysts expect the Romanian leu to depreciate to over 5.0261 units to the euro within the next 12 months, while seeing inflation averaging 4.38% during the same period. 

In fixed income markets, Romania raised 400 million lei (EUR80.8 million) selling bonds maturing in October 2027 at an average yield of 3.75%, National Bank of Romania (BNR) data showed.

28/09/2021
On Tuesday, the BET index rose 0.10% to 12,522.92 points. The BET-TR also increased by 0.10% to 22,163.25 points. The BET-FI index was off 0.94% to 52,638.03 points. The BET Plus climbed 0.08% to 1,868.67 points.

In business news, Romanian business executives expect moderate growth in the economic activity in retail trade and services, as well as in prices in the processing industry, constructions and trade for September -November 2021, National Institute of Statistics (INS) data showed. 

In labor market news, Romania’s Labor Ministry seeks to raise the minimum net wage to RON1,524 (EUR307.9) starting with January 1, 2022, which translates into a 10% increase (+RON138) compared to the current level, while the minimum gross wage is seen reaching RON2,550 (+10.9%). 

On the trade front, goods loaded/unloaded in ports which operate seagoing ships recorded 24.74 million tons in H1 2021, of which 12.95 million tons in Q2 2021, according to INS data. 

29/09/2021
On Wednesday the BET index rose 0.74% to 12,615.46 points while the BET-TR moved up 0.74% to 22,326.23 points. The BET-FI index gained 1.19% to 53,263.98 points. The BET Plus grew 0.70% to 1,881.84 points.

29/09/2021
On Thursday, the BET index added 0.23% to 12,645.10 points while the BET-TR climbed 0.25% to 22,381.90 points. The BET-FI ticked up 0.03% to 53,280.32 points while the BETPlus was higher by 0.27% to 1,886.94 points. 

In politics, the censure motion initiated by the Social Democratic Party (PSD) was read on Thursday in the joint plenary session of the Senate and the Chamber of Deputies. 

The motion, titled "Stop poverty, price increases and criminals. Down with the Citu Government!", is signed by 157 PSD MPs. 

On the banking front, Romanians took out almost RON2.63 billion new consumer loans in August, up 49.4% than in the same month a year ago.

In labor market news, Romania's unemployment rate stood at 5.2% in August 2021,  up 0.1% compared to July 2021, INS data showed.

In investment news, Romania attracted foreign direct investment (FDI) flows totaling EUR3 billion in 2020, of which: EUR 3.9 billion enterprises’ equity (equity worth EUR 983 million, plus reinvestment of earnings worth EUR 3 billion); EUR -994 million debt transactions with foreign direct investors and non-resident fellow companies (debt less claims), BNR data showed.

On the construction front, Romanian authorities issued 4,873 residential building permits in August 2021, 0.4% fewer than in July 2021 and 12.5% more than in August 2020, according to INS data.

01/10/2021
On Friday, the BET index lost 0.09% to 12,633.19 points while the BET-TR fell 0.10% to 22,359.74 points. The BET-FI added 0.05% to 53,306.87 points. The BET Plus dropped 0.12% to 1,884.70  points.

In currencies and commodities, BNR’s foreign exchange reserves stood at EUR 41.2 billion in September 2021, compared to EUR 41.6 billion on 31 August 2021. The gold stock remained steady at 103.6 tonnes, BNR said.

On the macro front, Adrian Vasilescu, the counselor of the Romanian Central bank (BNR) governor told Profit News that inflation may exceed 5.6% until year end, higher  than the rate foreseen by BNR and  warned that 2022 will not be any better.  

Bucharest Stock Exchange BET index
(BET index performance on Friday 01/10/2021 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

  • Romgaz seeks to borrow EUR350 million in order to acquire US giant ExxonMobil's 50% stake in the Neptun Deep gas exploration and drilling project in the Black Sea, according to local daily Ziarul Financiar. 
  • Nuclearelectrica targets a 40% higher net profit this year, compared to the previous budget, mainly due to the increase in electricity prices.  
  • TeraPlast shares have been included by the Vienna Stock Exchange in the CECE MID CAP index, part of the regional CECExt (CECE Extended Index) indices family, starting September 2021.  
  • BVB will launch three new indices, respectively BET AeRO, BET-TRN and BET-XT-TRN, on October 11, 2021. 
  • One United Properties, and Le Manoir Group, active in the field of fine gastronomy, have bought boutique hotel Carpathian Lodge Magura in Buzau, for EUR2.35 million. 
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