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), gained 0.87% to 12,714.70 points.
The BET-TR index, which also includes the dividends offered by the companies from the BET index, also rose 0.87% to 22,498.01 points.
The BET-FI index which tracks the five SIFs and the property restitution fund Fondul Proprietatea, was higher by 0.54% to 51,534.11 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, advanced 0.84% to 1,895.99 points. Financial investment companies are excluded from the index.
In fixed income markets, Romania’s Finance Ministry reopened a bond issue due in 2030 at an annual yield of 4.93%, raisinf RON600 million from local banks on Monday.
In currencies, Romania's foreign exchange reserves dropped to EUR39.8 billion last month, lower by EUR1.37 billion compared to September, National Bank of Romania (BNR) data showed.
On the banking front, the number of card payment transactions in Romania increased by 61% to RON327 million while the value of transactions grew 60% to RON41.4 billion in the last two years data from Dreptul La Banking (The Right to Banking) platform based on BNR data.
On Tuesday, the BET index was higher by 0.09% to 12,726.37 points. The BET-TR also rose 0.09% to 22,518.02 points. The BET-FI index increased by 0.32% to 51,696.55 points. The BET Plus added 0.14% to 1,898.69 points.
In labour market news, employers in Romania advertised over 309,000 jobs in the first ten months of this year, almost 10,000 more than the level reported for full-year 2020, according to recruitment website platform eJobs.ro.
Meanwhile, Romanian employees who had to work more from home in the last 18 months due to the COVID-19 want to return to the office and only 10% of them want to work exclusively from home, according to the “Back to the Office” study conducted by Cushman & Wakefield Echinox.
On Wednesday the BET index climbed 0.78% to 12,825.46 points while the BET-TR increased by 0.77% to 22,692.11 points. The BET-FI index was up 0.52% to 51,963.85 points. The BET Plus was higher by 0.82% to 1,914.18 points.
On the macro front, Romania's seasonally adjusted unemployment fell to a three-month low of 5% in September 2021 from 5.2% in the previous month, data from the National Institute of Statistics (INS) showed.
On Thursday, the BET index grew 0.66% to 12,884.30 points while the BET-TR moved up 0.46% to 22,796.32 points. The BET-FI rose 0.34% to 52,140.03 points while the BETPlus gained 0.51% to 1,923.97 points.
In politics, Romania's President Klaus Iohannis announced on Thursday that he will call the parties to formal consultations when a parliamentary majority crystallizes.
On the macro front, the European Bank for Reconstruction and Development (EBRD) on Thursday (Nov 4) revised upwards its forecast on Romania’s GDP growth to 7.2% in 2021 and 4.4% in 2022, compared to 6% in June.
In real estate news, the total value of property investments exceeded EUR540 million in Romania in the first nine months of this year, lower by 30% compared to the same period in 2020, with almost half the amount transacted being recorded in the third quarter of 2021, Colliers Romania consultants revealed.
On Friday, the BET index depreciated by 0.07% to 12,874.81 points while the BET-TR also fell 0.07% to 22,779.61 points. The BET-FI dropped 0.77% to 51,740.20 points. The BET Plus was off 0.09% to 1.922.33 points.
On the macro front, Romania retail turnover, the main barometer for private consumption, in the first nine months of 2021 increased by 11.9% as gross series from the same period a year ago, amid rising sales of non-food items (17.6%), fuel (11.8%) and food, beverages and tobacco (6%), INS data showed.
In investment news, the investment fund industry in Romania has 100,000 new investors in September 2021 compared to the same month a year ago and 52.9 billion lei under management, representing 4.6% of the country's GDP, the president of the Association of Fund Administrators (AAF) , Horia Gusta told a conference devoted to the stock market.
In other news, the number of impact companies in imminent insolvency (6,654) was in 2020 at the highest level in past years, according to a study by CITR analysts.
(BET index performance on Friday 05/11/2021 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
- Romgaz will pay up to $1.07 billion to US energy giant Exxon Mobil for its 50% stake in Neptun Deep, a Black Sea offshore gas project, the Romanian state-owned company said.
- TeraPlast plans to hire 200 persons by end-2022
- Electrica has signed a RON750 million loan agreement with Austian banking group Erste and Raiffeisen Bank Romania.
- Fondul Proprietatea is summoning its shareholders on Dec 15 to approve a share buyback program worth maximum RON2 billion and a special dividend of RON0.06 per share.
- At the United Nations Conference on Climate Change (COP26) in Glasgow on Thursday, Nuclearelectrica CEO Cosmin Ghita and US-based NuScale Power President and CEO John Hopkins signed an official agreement sealing the partnership on building a small modular nuclear reactor ( SMR) in Romania.