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), dropped 0.26% to 11,273.23 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also fell 0.26% to 18,988.89 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, dropped 0.31% to 48,510.33 points. The BETPlus index was off 0.22%, to 1,685.47 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 RON580 million selling bonds maturing in June 2026 at 2.59% average yield.
In economic news, retail sales rose by 0.6% in February m-o-m when adjusted for seasonality and number of working days, data by the National Institute of Statistics (INSSE) showed.
On Tuesday the BET index weakened 0.25% to 11,245.00 points. The BET-TR also dropped 0.25% to 18,941.35 points. The BET-FI index fell 0.24% to 48,391.54 The BETPlus was down 0.25% to 1,681.18 points.
On the macro front, Romania's seasonally adjusted unemployment rate rose to 5.7% in February from 5.6% in January
Meanwhile, the International Monetary Fund (IMF) revised upwards its forecast on Romania’s economic growth to 6% this year.
On Wednesday the BET index ticked down 0.01% to 11,243.97 points while the BET-TR was also lower by 0.01%to 18,939.62 points. The BET-FI index decreased by 0.49% to 48,153.55 points. The BET Plus ticked up 0.01% to 1,681.38 points.
In fixed income markets, Romania tapped the international markets with 12 and 20-year Eurobond issues and borrowed EUR3.5 billion from external markets with the first Eurobond issue of 2021.
In real estate news, the number of deals in the country stood at 62,891 in March, 12,744 more than in February, data from the National Agency for Cadastre and Land Registration (ANCPI) showed.
JLL consultancy says demand for housing will remain strong in Bucharest, as the Working from Home trend supports the growth of the residential market.
On Thursday the BET index declined 0.33% to 11,206.79 points while the BET-TR also fell 0.33% to 18,877.00 points. The BET-FI index rose 0.04% to 48,173.94 points. The BETPlus declined 0.31% to 1,676.23 points.
In fixed income markets, Romania's finance ministry raised RON1 billion via two bond issues.
On the macro front, the country's real GDP contraction was reconfirmed at 3.9% in 2020 by the INSEE.
In construction news, Romanian construction material manufacturers saw a 20% to 30% growth last year.
Of note, in 2020 traded value on Bucharest capital market grew 54%.
On Friday, the BET index closed up 0.32% to 11,242.28 points while the BET-TR added 0.32% to 18,936.79 points. The BET-FI index rose 0.93% to 48,621.17 points. The BETPlus was up 0.28% to 1,681.00 points.
On the macro front, Romania posted a trade deficit of EUR3.07 billion in January and February.
In labour market news, job applications grew 70% in the first quarter and job openings stay constant, according to online job applications platform eJobs.
(BVB's BET index performance Friday 09/04/2021 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
- BVB and Employers Association of the Software and Services Industry will partner to promote the local capital market as a financing source for the entrepreneurs from the IT sector
- Romgaz terminates its contract for the construction of Iernut power plant.
- Purcari plans to distribute RON26 million dividends at 5% yield.
- Digi proposes RON0.75 gross dividend per share from 2020 profit.
- MedLife acquires majority stake in Medica Sibiu.
- Romania’s energy regulator ANRE has announced that Transgaz and other natural gas distribution operators carried out RON1.7B investments in 2020.
- OMV Petrom hydrocarbon output decreased by 7.5% YoY in 1Q/2021.