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Bucharest Stock Exchange Weekly Review 28/12/2020-01/01/2021

posted onJanuary 2, 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 the week. The content of this review is for informational purposes only and should not be interpreted as specific investment advice.

28/12/2020
On Monday, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), advanced 0.34% to 9,718.49 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, added 0.34% to 16,363.11 points. 

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, rose 0.65% to 43,030.56 points. The BETPlus index moved up 0.36%, to 1,452.14 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 economic news, Romanian’s new Prime Minister Florin Citu said the wages in the public sector would be frozen at the level of December 2020. The government also said it would discuss this week increasing the minimum gross salary to RON2,300 (around EUR471) in 2021. The current level is RON2,230 (around EUR457).

On the banking front, private lending in Romania grew 0.7% in November 2020 month-over-month, to RON281 billion, data by the National Bank of Romania (BNR) showed.

29/12/2020

On Tuesday the BET index gained 0.21% to 9,738.51 points while the BET-TR also climbed 0.21% to 16,396.82 points. The BET-FI index lost 0.33% to 42,887.89. The BETPlus grew 0.19% to 1,454.89 points.

In economic news, the Romanian budget deficit widened to 8% of GDP in the first eleven months of the year, Ministry of Finance data showed. During the period under review, RON43.66 billion was injected into the economy via tax facilities and incentives, investments and exceptional costs for fighting the COVID-19 crisis. 

In real estate news, the modern office space stock in Romania has doubled from 1.5 million to almost 3 million square meters within 10 years. Rents have remained relatively stable, declining from EUR19.5/square meter in 2011 to EUR18.75/square meter in 2020, while yields dropped from 8.25% to 7%, according to data by CBRE.

In other business news, the courier industry has experienced impressive growth in the past decade. From 875 million lei revenue in 2008 it saw more than RON4 billion ten years later, National Statistics Institute (INSEE) data show. 

On the insurance front, the number of insurance contracts grew 4% year-over-year to nearly 16.2 million in the first nine months of 2020, according to data by Romania's financial watchdog ASF.

30/12/2020
On Wednesday the BET index was up 0.69% to 9,805.60 points while the BET-TR also gained 0.69% to 16,509.64 points. The BET-FI index added 0.44% to 43,077.92 points.

The BETPlus increased by 0.68% to 1,464.75 points. In industrial news, the processing industry in Romania lost 63,400 employees in one year. From 1,149,200 people in October 2019, it ended up with 1,085,800 in October 2020, INSEE data show.

On the energy front, Romania’s electricity market will be liberalized as of January 1, 2021. Electricity supply prices for households will no longer be regulated by the country’s energy regulator ANRE.

Bucharest Stock Exchange BET index

(BVB's BET index performance Wednesday 30/12/2020 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:

  • TeraPlast received the financing agreement for its new polyethylene systems factory. The project is worth EUR10 million in total and the state aid represents EUR4.9 million.
  • OMV Petrom sells its production assets in Kazakhstan. Kom-Munai LLP (KOM) and Tasbulat Oil Corporation LLP (TOC) in Kazakhstan will be acquired by Magnetic Oil Limited. Meanwhile, OMV plans to focus on the Black Sea region.