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), advanced 0.09% to 11,431.12 points.
The BET-TR index, which also includes the dividends offered by the companies from the BET index, grew 0.11% to 19,631.75 points. The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, ticked up 0.03% to 48,457.47 points.
The BETPlus index gained 0.08%, to 1,710.59 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.
Of note, Banca Comerciala Romana (BCR) listed on Monday (May 31), the largest bond issue on the BVB), worth RON1 billion.
On the macro side, Romania's unemployment rate stood at 5.7% in April, National Institute of Statistics data showed.
On the investment front, last month Romania’s five regional investment funds SIFs listed on the BVB saw a 2.3% growth in combined net assets to RON10.5 billion.
In real estate news, CBRE consultancy said that logistics space transactions worth EUR38M were signed in Romania in the first quarter of 2021.
On Tuesday, the BVB was closed due to a public holiday.
On Wednesday the BET index increased by 1.32% to 11,582.46 points while the BET-TR was up 1.61% to 19,948.68 points. The BET-FI index rose 2.26% to 49,551.34 points. The BET Plus grew 1.31% to 1,732.94 points.
In currency news, Romania's foreign exchange reserves fell to EUR37.57 billion in May, lower by EUR738 million than in the previous month, National Bank of Romania (BNR) data showed.
On the macro side, Moody’s Investors Service sees Romania’s economy growing 4% on the medium term. The agency kept the country’s rating at Baa3 with Negative Outlook.
On Thursday, the BET index added 0.19% to 11,604.44 points while the BET-TR moved up 0.20% to 19,988.25 points. The BET-FI index gained 0.67% to 49,883.04 points. The BETPlus was higher by 0.21% to 1,736.54 points.
In fixed income markets, Romania raised RON571 million selling bonds maturing in November 2024 at 2.43% average yield, BNR data showed.
In real estate news, JLL consultancy said that real estate investment volume dropped 50% in the first quarter of the year.
On the investment front, the Foreign Investors Council (FIC), which includes over 120 multinational companies operating in Romania, thinks the country currently has both the potential and the chance to implement key reforms for a strong and long-lasting economic recovery.
On Friday, the BET index dropped 0.75% to 11,517.63 points while the BET-TR lost 0.75% to 19,837.53 points. The BET-FI was lower by 0.68% to 49,544.15 points. The BET Plus was down 0.81% to 1,723.36 points.
On the macro side, retail sales in Romania, excluding vehicle sales, rose 5% in April month-over-month, INSEE data showed.
(BET index performance on Friday 04/06/2021 Source: BVB)
BET INDEX CONSTITUENTS
Below are the 17 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. Purcari Wineries (WINE), the largest wine exporter from Moldova.
13. Romgaz (SNG), Romania’s largest natural gas producer and supplier.
14. Sphera Franchise Group (SFG) a holding company which manages restaurants under the KFC, Pizza Hut and Taco Bell brands.
15. TeraPlast (TRP) the largest Romanian producer of construction materials.
16.Transgaz (TGN) the Romanian state-controlled gas transporter.
17. Transelectrica (TEL), electricity transmission system operator.
BET INDEX CONSTITUENTS NEWS
- Banca Transilvania said that its board of directors has approved the acquisition of the total holding owned by Polish financial holding company Getin in the capital of Idea Bank Romania for 43 million euro.
- Sphera Franchise Group opens KFC drive-thru unit in the city of Braila, reaching 88 KFC restaurants in Romania.
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