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Bucharest Stock Exchange Weekly Review 04-08/01/2021

posted onJanuary 9, 2021

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.

On Monday, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), advanced 0.39% to 9,843.60 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also added 0.39% to 16,573.51 points. 

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, fell 0.60% to 42,819.05 points. The BETPlus index moved up 0.38%, to 1,470.25 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 fixed income markets, Romania raised 1 billion lei (EUR205.37 million), versus its RON700 million target, selling bonds maturing in November 2024 at an average yield of 2.6%, according to National Bank of Romania (BNR) data.

In currencies, Romania's foreign exchange reserves stood at EUR37.379 billion in December from EUR33.393 billion the previous month, BNR data showed.

In auto industry news, new car registrations in the country dropped 21.79% year-over-year to 126,351 units in 2020, according to data from the European Automobile Manufacturers Association (ACEA) and the association of automotive manufacturers in Romania (ACAROM).

On Tuesday the BET index declined 0.17% to 9,826.75 points while the BET-TR also dropped 0.17% to 16,545.10 points. The BET-FI index lost 0.10% to 42,777.06 The BETPlus was down 0.16% to 1,467.84 points.

On the macro front, the World Bank expects Romania's economy to shrink by 5% in 2020, followed by a 3.5% growth in 2021 and a 4.1% growth in 2022, according to a note by Banca Transilvania.

In business news, 2021 will bring interesting opportunities on the Romanian mergers and acquisitions market in terms of political change, consumer behavior and entrepreneurs' ability to adapt to the challenges of post-pandemic uncertainty, an EY Romania study said.

On Wednesday the BET index climbed 1.00% to 9,925.01 points while the BET-TR also gained 1.00% to 16,710.55 points. The BET-FI index added 0.90% to 43,160.68 points. The BET Plus rose 0.98% to 1,482.24 points.

In financial news, the Romanian Parliament will receive the 2021 State Budget Bill on February 4, prime minister Florin Citu said. Meanwhile, the European Commission seeks talks on Romania's 2021 budget as the fiscal situation in the country continued to deteriorate substantially in 2020, the EU’s executive arm said in a letter addressed to newly appointed finance minister Alexandru Nazare.

On Thursday the BET index increased by 0.64% to 9,988.89 points while the BET-TR added 0.64% to 16,818.11 points. The BET-FI index rose 0.21% to 43,251.51 points. The BETPlus climbed 0.64% to 1,491.77 points.

In fixed income markets, Romania raised RON800 million lei (EUR164.2 million), versus a RON500 million target, selling bonds maturing in October 2030 at an average yield of 2.97%, BNR data showed.

In real estate news, Romania issued 3,152 housing construction permits for residential buildings in November 2020, down 7.9% year-over-year, the National Institute of Statistics (INSSEE) said.

On Friday, the BET index rose 1.56% to 10.144.77 points while the BET-TR also gained 1.56% to 17,080.35 points. The BET-FI index increased by 1.25% to 43,791.99 points. The BETPlus added 1.54% to 1,514.80 points.

In labor market news, Romania’s unemployment rate dropped to 5.1% in November 2020, month-over-month, INSEE data showed.

BET index Bucharest Stock Exchange

(BVB's BET index performance Friday 08/01/2021 Graph Source: BVB)

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:

  • Electrica announced it completed the merger process of its three electricity distribution companies which became Distributie Energie Electrica Romania SA (DEER) starting January 1, 2021.
  • Fondul Proprietatea has lowered its stake in nuclear power producer Nuclearelectrica to 4.99%, below the 5% legal reporting threshold.