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 0.63% to 10,566.40 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also grew 0.63% to 17,792.70 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, gained 0.45% to 47,688.89 points. The BETPlus index rose 0.62%, to 1,578.41 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.
Of note, the Romanian capital market is up 18% in 12 months. Nearly a quarter of this growth pace achieved in the first two months this year, BVB said.
In fixed income markets, Romania rejected all bids at a tender where it planned to raise 400 million lei (EUR81.9 million) selling bonds maturing in June 2026, data by the National Bank of Romania (BNR) showed.
In real estate news, the number of real estate deals in the country reached 50,147 last month, 1,411 more than in January, data from the National Agency for Cadastre and Land Registration (ANCPI) showed.
On Tuesday the BET index moved up 0.44% to 10,612.92 points while the BET-TR rose 0.46% to 17,874.35 points. The BET-FI index lost 0.20% to 47,594.69. The BETPlus added 0.42% to 1,585.04 points.
On the macroeconomic front, Romania's gross domestic product (GDP) shrunk by 3.9% in real terms in 2020 compared with 2019, National Institute of Statistics (INSEE) data showed.
In business news, e-commerce giant Amazon plans to open three offices in Romania: One in Timisoara and two more in Iasi by the end of the year, creating 500 more jobs.
On Wednesday the BET index was off 0.16% to 10,595.79 points while the BET-TR was also down 0.16%to 17,845.31 points. The BET-FI index dropped 0.10% to 47,547.23 points. The BET Plus was off 0.10% to 1,583.51 points.
In labor market news, Romania's seasonally adjusted unemployment rate rose to 5.6% in January from 5.2% in December, INSSE data confirmed. INSEE data also showed that net investments in the Romanian economy grew marginally last year, just 0.1% to RON106.195 billion.
On Thursday the BET index gained 1.20% to 10,723.45 points while the BET-TR also climbed 1.20% to 18,060.04 points. The BET-FI index moved up 0.34% to 47,709.87 points. The BETPlus grew 1.18% to 1,602.27 points.
On the macroeconomic front, Romania's annual inflation rate climbed to 3.2% in February from 3% in January, still driven by higher electricity prices following the liberalization of the country's retail electricity market on January 1, INSSE data showed.
In real estate news, hotel transaction volume in Romania dropped 87% last year, to around EUR9.5 million, from EUR75 million in 2019, Cushman & Wakefield Echinox said in a report adding that the hospitality market fundamentals stay strong.
On Friday, the BET index closed up 0.18% to 10,742.75 points while the BET-TR also advanced 0.18% to 18.092.56 points. The BET-FI index gained 1.15% to 48,259.15 points. The BETPlus was up 0.23% to 1,605.94 points.
In labor market news, Romania average net salary dropped 6.2% in January compared with December 2020, to 3,395 lei (around EUR695), INSSE data showed.
Romania posted a trade deficit of EUR1.193 billion in January, lower by EUR124.6 million compared with January 2020, INSSE data showed.
In real estate news, office space demand in Bucharest plunged nearly 40% in 2020, down to 214,000 square meters, the lowest level since 2012, and the new demand reached approximately 70,000 sqm, Colliers data showed.
(BVB's BET index performance Friday 12/03/2021 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
- TeraPlast Group proposes to distribute special dividends totaling RON226.6 million at 24% yield/share.
- OMV Petrom signed a production sharing contract for the offshore Block II in the exclusive economic zone of Georgian Black Sea.