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Bucharest Stock Exchange Weekly Review 05-09/10/2020

posted onOctober 10, 2020

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, BVB together with the Financial Supervisory Authority (FSA), organized an official opening of the trading session and rang the bell with the occasion of the World Investor Week 2020, held under the auspices of IOSCO.

Tthe benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), closed 0.12% lower to 8,869.35 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, fell 0.12% to 14,917.96 points.

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, decreased by 1.06% to 41,612.33 points. The BETPlus index weakened 0.14%, to 1,327.74 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 real estate news, nearly 60% of employees miss their office, JLL Romania consultants said Monday, adding the reactivation of office spaces is inevitable and is gaining momentum.

In economic news, retail sales in the country dropped 1.2% in August month-over-month, as sales of non-food items declined 2.6% and fuel sales dropped 1.4%, data from the National Institute of Statistics (INSSE) showed. 

On Tuesday the BET index increased by 0.18% to 8,885.36 points while the BET-TR also added 0.18% to 14,944.64 points. The BET-FI index depreciated by 0.13% to 41,557.18. The BETPlus gained 0.21% to 1,330.49 points.

On Wednesday the BET index lost 0.18% to 8,869.71 points while the BET-TR was off 0.17% to 14,918.57 points. The BET-FI index was higher by 0.04% to 41,572.64 points. The BETPlus decreased by 0.16% to 1,328.41 points.

In investing news, Romania’s future retirees, or 7.6 million people who pay 3.75% of their monthly gross income into a pension account have become – unknowingly for most of them, the largest investors on the Bucharest Stock Exchange with significant stakes in listed companies (21.6% in Banca Transilvania, 27.5% in MedLife And, 8.4% in OMV Petrom)

On Thursday the BET index increased by 0.06% to 8,875.47 points while the BET-TR grew 0.07% to 14,928.48 points. The BET-FI index advanced 0.47% to 41,767.63 points. The BETPlus moved up 0.06% to 1,329.18 points.

The Bucharest Stock Exchange (BVB)  informed investors that the European Bank for Reconstruction and Development’s (EBRD) holding in BVB has fallen below the threshold of 5%, owning at present 4.997% of the share capital of BVB.

On Friday the BET index dropped 0.39% to 8,841.21 points while the BET-TR declined 0.39% to 14,870.77 points. The BET-FI index lost 1.21% to 41,262.45 points. The BETPlus was down 0.42% to 1,323.58 points.

In economic news, Romania’s GDP plunged 10.2% in real terms in the second quarter year-over-year, less than the previously estimated 10.5%, a second reading from the INSEE showed. The average net salary in the country dropped 2.9% in both nominal and real terms in August compared with July, to 3,275 lei (around EUR672), INSEE said.

Meanwhile, new corporate loans in lei rose 13% to RON2.9B in August. 

Bucharest Stock Exchange BET index

(BET index performance on  Friday 09/10/2020 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:

  • Transgaz shareholders gave the green light on Monday enabling the European Bank for Reconstruction and Development (EBRD) to become a shareholder in Vestmoldtransgaz with a 25% stake. Vestmoldtransgaz. Founded in 2014, Vestmoldtransgaz owns and manages a gas pipeline network in western Moldova and provides natural gas transport services. The company is operating the newly built 120 km Ungheni-Chisinau gas pipeline.
  • Sphera Franchise Group (SFG) on Friday announced it has appointed Calin Ionescu as its chief executive officer for a three-year term.