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 19 companies except for the Financial Investment Companies (SIFs), lost 0.11% to 12,860.05 points.
The BET-TR index, which also includes the dividends offered by the companies from the BET index, also fell 0.11% to 22,754.90 points.
The BET-FI index which tracks the five SIFs and the property restitution fund Fondul Proprietatea, was up 0.16% to 51,825.22 points.
The BETPlus Index which tracks the price changes of Romanian companies listed on BVB’s Regulated that minimum selection criteria of liquidity and free float, was off 0.09% to 1,920.68 points. Financial investment companies are excluded from the index.
In fixed income news, Romania on Monday raised RON573 million selling bonds maturing in January 2028 at an average yield of 4.82%, National Bank of Romania (BNR) data showed.
In real estate news, the total value of property investments exceeded EUR540 million in Romania in January-September 2021, down 30% compared to the same period a year ago, according to Colliers
On Tuesday, the BET index was lower by 0.10% to 12,847.75 points. The BET-TR also declined 0.10% to 22,732.31 points. The BET-FI index decreased by 0.52% to 51,555.62 points. The BET Plus was down 0.14% to 1,918.02 points.
On the macro front, Romania posted a trade deficit of EUR16.7 billion in the first nine months of the year, National Institute of Statistics (INS) data showed.
On Wednesday the BET index weakened 0.53% to 12,779.74 points while the BET-TR dropped 0.52% to 22,613.12 points. The BET-FI index was up 0.51% to 51,818.19 points. The BET Plus was off 0.50% to 1,908.52 points.
On the macro front, Romania's annual inflation rate increased to 7.9% in October from 6.29% a month earlier. It was the highest reading since May 2011, boosted by a faster rise in prices of food products, non-food products and services.
In real estate news, 132,200 sqm of office space were delivered in Bucharest in the third quarter of 2021, the highest quarterly value ever recorded on the Romanian market, according to Cushman & Wakefield Echinox.
In auto industry news, electric and hybrid cars doubled their market share in Romania. Electric and hybrid car registrations reached 20.5% of the total new cars last month, data from the Automotive Manufacturers and Importers Association (APIA) showed.
On Thursday, the BET index ticked up 0.02% to 12,782.64 points while the BET-TR moved up 0.03% to 22,618.90 points. The BET-FI moved up 0.02% to 51,829.92 points while the BETPlus gained 0.04% to 1,909.20 points.
On the macro front, BNR it its November Inflation Report released Thursday, revised upwards its annual inflation forecast to 7.5% in December 2021, up 1.9 percentage points than the level anticipated in August.
Meanwhile, the European Commission, in its Autumn 2021 Economic Forecast report, said Romania’s economy is expected to expand by 7% this year, slightly lower than the 7.4% growth rate projected in July.
The average net salary in the country inched up 0.9% in September, compared with August, to 3,517 lei (EUR710.6), INS data showed.
On Friday, the BET index advanced 0.40% to 12,833.40 points while the BET-TR rose 0.41% to 22,711.57 points. The BET-FI added 0.04% to 51,851.76 points. The BET Plus was up 0.36% to 1.916.00 points.
(BET index performance on Friday 12/11/2021 Source: BVB)
BET INDEX CONSTITUENTS
Below are the 19 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. One United Properties (ONE), one of Bucharest’s most dynamic developers of housing, office and mixed projects.
13. Purcari Wineries (WINE), the largest wine exporter from Moldova.
14. Romgaz (SNG), Romania’s largest natural gas producer and supplier.
15. Sphera Franchise Group (SFG) a holding company which manages restaurants under the KFC, Pizza Hut and Taco Bell brands.
16. TeraPlast (TRP) the largest Romanian producer of construction materials.
17.Transgaz (TGN) the Romanian state-controlled gas transporter.
18. Transelectrica (TEL), electricity transmission system operator.
19 .Transport Trade Services (TTS), river/maritime and land transport of bulk and packed commodities goods, handling of goods and equipment in Danube ports and Constanta, door to door transportation.
BET INDEX CONSTITUENTS NEWS
- BVB's net profit stood at RON5.53 million in the first nine months of 2021, down 37% from RON8.76 million in the same period a year ago, with a net margin of 30%.
- MedLife announced announced it completed the acquisition of 100% of OncoCard Hospital Brașov, one of the most important diagnostic and oncological treatment centers in Romania.
- Romgaz records RON1.16 billion net profit in the first 9 months of 2021, up 23% on the year.
- Nuclearelectrica ended the first nine months of 2021 with RON641.1 million net profit, up 34% on the year.
- Banca Transilvania said its net profit was 1.47 billion lei ($340.30 million) in the first nine months of 2021, up 63.4% on the year,
- Alro said it ended the first nine months of 2021 with a turnover of RON2.5 billion, up 27% on the year.
- Digi Communications switched to profit of EUR40 million (RON200 million) in the first nine months of 2021, as compared to a loss of EUR23.5 million in the same period a year ago.
- Transgaz ended the first nine months of 2021 with a net profit of RON112 million, down 45% on the year.
- Transelectrica's net profit decreased by 46.7% on the year to RON81 million in the first nine months of 2021.