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Bucharest Stock Exchange Weekly Review 12-16/07/2021

posted onJuly 18, 2021
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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.

12/07/2021
On Monday, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), moved up 0.82% to 11,967.80 points. 

The BET-TR index, which also includes the dividends offered by the companies from the BET index, also rose 1.14% to 20,851.14 points.

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, depreciated by 0.23% to 52,937.22 points.

The BETPlus index was lower by 0.24%, to 1,797.58 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 market news, Romania raised 200 million lei (EUR51.8 million) selling bonds maturing in April 2036 at an average yield of 4.31%, National Bank of Romania (BNR) data showed. 

On the macro front, Romania posted a trade deficit of EUR8.8 billion in the first five months of the year, up by EUR1.4 billion y-o-y, according to data from the National Institute of Statistics (INS). 

In a separate release INSEE said the average net salary in the country fell 1.9% in nominal terms in May compared with the previous month, to 3,492 lei (around EUR708). 

In business news, Romania’s mergers and acquisitions (M&A) market saw 54 deals estimated at nearly EUR1.2-1.4 billion in the first half of this year, compared with 42 deals in the same period in 2020, according to Deloitte.

13/07/2021
On Tuesday, the BET index rose 0.32% to 12,006.24 points. The benchmark index
overshot the 12,000-point mark for the first time ever, closing at a new all time high. 

The BET-TR was also higher by 0.32% to 20,918.05 points. The BET-FI index decreased by 0.46% to 52,704.34 points. The BET Plus climbed 0.33% to 1,794.86 points.

On the macro front, Romania's annual inflation rate inched up to 3.94% last month from 3.75% in May and above market estimates of 3.7%. It was the highest inflation rate since December 2019, due to a faster rise in prices of food products (2.2% vs 1.5% in May),  INSEE data showed. 

In industrial news, Romania manufactured 236,663 vehicles in the first half of 2021, according to the country's carmakers association ACAROM. Meanwhile, the country's industrial production grew 16.9%  in the first five months of the year, compared to the same period in 2020, INS data showed. 

In business news, seven in ten Romanian tech startups were affected by the COVID-19 crisis, a survey by the  Romanian Tech Startups Association (ROTSA) showed. 

In real estate news, the housing rental market in Romania is expected to grow in the coming years according to Colliers. Increases in housing prices and construction costs limit people’s possibility of owning a larger house, thus supporting the evolution of the rental market, the firm's analysis showed.

In investment news, regional investment fund SIF Transilvania (SIF3.RO) has been authorized by the Financial Supervisory Authority (ASF), Romania's financial watchdog, as a Retail Investor Alternative Investment Fund (RIAIF), according to a BVB report. 

On the travel front, Constanta's Mihail Kogalniceanu International Airport saw a 72% drop in number of passengers in H1, compared to the same period a year ago.

14/07/2021
On Wednesday the BET index gained 0.41% to 12,055.03 points while the BET-TR was up 0.40% to 21,002.54 points. The BET-FI index gained 0.67% to 53,057.39 points. The BET Plus increased by 0.39% to 1,801.85 points. 

On the macro front, Romania's current account Gap widened to EUR5.94 billion in the first five months of the year, compared with a deficit of EUR3.207 billion in the same period in 2020, BNR data showed. 

In currency trading, the Romanian leu dropped to a fresh all-time low against the euro on Wednesday, standing at 4.9283 vs the European currency.

In construction news, Romania’s Competition Council has opened an in-depth inquiry into the local building materials market, against the backdrop of increases in prices of some building materials both locally and internationally.

15/07/2021
On Thursday, the BET index depreciated by 0.25% to 12,025.00 points while the BET-TR also fell 0.25% to 20,950.59 points. The BET-FI index was off 0.23% to 52,937.22 points. The BETPlus was lower by 0.24% to 1,797.58 points.

In fixed income markets, Romania  raised 590 million lei (EUR117.9 million) selling bonds maturing in June 2026 at an average yield of 3.05%, BNR data showed.

On the banking front, banks in Romania granted about RON2.63 billion worth of new loans to companies in May, down 25% compared to the previous month. 

16/07/2021
On Friday, the BET index ticked up 0.01% to 12,026.80 points while the BET-TR added 0.02% to 20,954.66 points. The BET-FI was off 0.08% to 52,896.01 points. The BET Plus grew 0.01% to 1,797.82 points.
In fixed income market news, the Fidelis government bonds for the general population, sold by the finance ministry on the capital market in July, started trading on the Bucharest Stock Exchange on Friday (July 16). 

BET index Bucharest Stock Exchange

(BET index performance on Friday 16/07/2021 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

  • Sphera Franchise Group plans to pay RON35 million to shareholders in dividends from the 2019-2020 undistributed profits. 
  • Banca Transilvania's (BT) chief financial officer George-Razvan Calinescu sold 75,000 BT shares at an average price of RON2.7 on July 9. 
  • Romania’s Competition Council has approved the takeover of pharmaceutical wholesaler Pharmachem Distributie by MedLife. 
  • Electrica Group's  electricity distribution subsidiary Distributie Energie Electrica Romania S.A. (DEER) will borrow EUR120 million from European Investment Bank (EIB) to upgrade electricity distribution network.
  • Fondul Proprietatea said its shareholders approved the payment of a special gross dividend of RON0.07 per share from profits left undistributed in 2016 and 2017. 
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