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), added 0.35% to 12,356.75 points.
The BET-TR index, which also includes the dividends offered by the companies from the BET index, advanced 0.37% to 21,740.07 points.
The BET-FI index which tracks the five SIFs and the property restitution fund Fondul Proprietatea, dropped 0.27% to 51,171.99 points.
The BETPlus Index which tracks the price changes of Romanian companies listed on BVB’s Regulated Market that minimum selection criteria of liquidity and free float, moved up 0.34% to 1,846.79 points. Financial investment companies are excluded from the index.
In fixed income markets, Romania raised RON300 million selling bonds maturing in October 2024 at an average yield of 4.34%, National Bank of Romania (BNR) data showed on Monday (Sept. 6).
On the macro front, Romania's economy grew 1.8% in real terms in the second quarter of 2021 compared with the first quarter of 2021, National Institute of Statistics (INS) data showed.
In business news, Italy's Enel Green Power is taking over two photovoltaic projects in Romania from Greek industrial conglomerate Mytilineos Group, the two companies announced.
On the banking front, Romania’s banks recorded a cumulated net profit of approximately RON 4.2 billion (EUR 857 mln) in the first half of this year, up by more than 50% compared with the same period a year ago, preliminary BNR data showed.
On Tuesday, the BET index weakened 0.12% to 12,341.58 points. The BET-TR declined 0.13% to 21,712.31 points. The BET-FI index was down 0.98% to 50,672.69 points. The BET Plus decreased by 0.16% to 1,843.80 points.
On the banking front, new consumer loans in Lei hit a 14-Year high in July, as Romanias borrowed RON2.87 billion. The figure is up 37.3% compared to same month last year, Ziarul Financiar reported.
In politics, ministers from the Union to Save Romania-PLUS (USR-PLUS) party- filed their resignations from the Romanian coalition government amid a growing political crisis. The crisis began last week after Liberal Prime Minister Florin Citu dismissed Justice Minister Stelian Ion — a member of the USR-Plus junior coalition partner — amid a row over a regional development fund, USR-Plus withdrew support for Citu and tabled a no-confidence motion — with the support of the AUR party — against him.
On Wednesday the BET index ticked up 0.04% to 12,346.71 points while the BET-TR rose 0.03% to 21,718.35 points. The BET-FI index jumped 3.28% to 52,335.39 points. The BET Plus moved up 0.04% to 1,844.46 points.
In politics, the resignations of all six USR-Plus ministers were accepted by President Klaus Iohannis on Wednesday. Interim ministers have been appointed. Fitch rating agency in a note warned the collapse of Romania’s coalition government could disrupt fiscal consolidation efforts, which are key to resolving the Negative Outlook on Romania’s ‘BBB-’ rating.
In currencies, the Romanian leu dropped to a fresh all-time low against the euro on Tuesday (Sept. 7), as the BNR average reference rate stood at 4.9488 lei to the European currency.
On Thursday, the BET index increased by 0.68% to 12,430.31 points while the BET-TR grew 0.66% to 21,862.28 points. The BET-FI rose 0.41% to 52,551.91 points while the BETPlus was higher by 0.65% to 1,856.42 points.
In politics, Romania's ruling Liberal Party put off a no-confidence vote against its government on Thursday.
The opposition Social Democrats backed the Liberals' postponement of the vote even after declaring they would vote to topple the government. The Constitutional Court said it will set a date for its ruling after Sept. 15. The Liberals are set to hold an internal party leadership election later this month, and analysts have said Citu is trying to delay the no-confidence motion until the party election on Sept. 25
In fixed income markets Romania raised 500 million lei (EUR101 million) selling bonds maturing in November 2024 at an average yield of 3.34%, BNR data showed.
In currencies, The leu is the only currency in Central and Eastern Europe which dropped against euro since the beginning of the year, data analysed by Profit.ro showed.
On the macro front, Romania's trade balance posted a deficit of EUR12.8 billion in the first sever months of 2021, up by EUR2.8 billion compared with the same period a year ago, data from INS showed.
In industrial news, Romania manufactured 286,038 vehicles in the first eight months of 2021, according to carmakers association ACAROM.
On the energy front, the residential end-user natural gas price will double in the coming winter, compared to the previous one, according to estimates of the vice-president of the Romanian energy market regulator (ANRE), Zoltan Nagy.
In labour market news, approximately 76.5% of Romanian employees say they have gone through at least one burnout episode in the last five years, according to a survey conducted last month by Undelucram.ro, the largest online community of employees in the country.
On Friday, the BET index lost 0.22% to 12,402.43 points while the BET-TR also fell 0.20% to 21,817.50 points. The BET-FI added 0.71% to 52,925.61 points. The BET Plus decreased by 0.21% to 1,852.49 points.
On the macro front, Romania's annual inflation rate increased to 5.25% in August from 4.95% a month earlier. It was the highest inflation rate since June 2018.
On the investment front, net investments in the Romanian economy increased by 10.6% in the first six months of 2021 compared with the same period a year ago, to RON48.513 billion, INS data showed.
In a separate release, INS said the average net salary in Romania stood at 3,545 lei (around EUR716) in July, up 0.1% compared with June.
(BET index performance on Friday 10/09/2021 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 entered into an agreement with Raiffeisen Centrobank AG for the provision of the Issuer Market Maker (IMM) services on the spot regulated market administered by the BVB. The shareholders of the largest lender in Romania, on Wednesday (Sept. 8) approved distribution of dividends using RON425.75 million from the 2020 profit and RON74.25 million from the net profit reserves of 2019, RON500 million in all.
- BVB said on Wednesday (Sept. 8) that for the first time in history, the combined capitalization of companies listed on the Regulated Market of the local bourse reached RON204.9 billion, the equivalent of EUR41.5 billion. BVB will expand the maximum number of companies included in the BET-XT, BET-XT-TR and BET-BK from 25 to 30, with the periodic adjustment of September 2021. BVB notified investors on Thursday that following the quarterly Index Committee meeting on Sept 9, 2021, a decision was made to modify the structure of the main index, BET and of the dividend index BET-TR by including Transport Trade Services (TTS.RO) and One United Properties (ONE.RO).
- TeraPlast Group concluded an agreement with Iasi-based Brikston Construction Solutions to take over the polyethylene film production from the manufacturer in Sighisoara.
- MedLife reported a 58% increase in pro-forma sales in the first half of this year