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Bucharest Stock Exchange Weekly Review 12-16/10/2020

posted onOctober 20, 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, the benchmark BET index, which includes the most traded 17 companies except for the Financial Investment Companies (SIFs), closed 0.52% higher to 8,887.41 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, added 0.52% to 14,948.37 points.

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, decreased by 0.63% to 41003.03 points. The BETPlus index climbed 0.52%, to 1,330.46 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 markets, Romania's finance ministry raised 324.7 million lei, versus a RON300 million target, selling government bonds maturing in October 2034 at an average yield of 3.93%, and 675 million lei (EUR138.55 million) selling bonds maturing in March 2022 at an average yield of 2.9% a year, National Bank of Romania (BNR) data showed.

In economic news, Romania's trade balance posted a deficit of EUR11.5 billion in the first eight months of the year, up 10% compared with the same period in 2019, data from the National Institute of Statistics (INSSE) showed. 

The INSSE also said the country’s annual inflation rate inched down to 2.5% in September 2020 from 2.7% in August. 

In real estate news, Romania’s industrial and logistics space market is seen exceeding 5 million square meters by the end of the year, according to a Colliers International report.

On Tuesday the BET index decreased by 0.12% to 8,877.11 points while the BET-TR dropped 0.11% to 14,931.52 points. The BET-FI index depreciated by 0.25% to 40,898.50. The BETPlus was off 0.12% to 1,328.82 points.

In economic news, the International Monetary Fund estimates Romania's economy will shrink by 4.8% this year, a slightly milder contraction compared with the 5% estimated in April, according to the fund’s latest World Economic Outlook.

In real estate news, Romania’s office space market, affected by the COVID-19 restrictions, was revived in the third quarter of 2020 by contract renegotiations and extensions, with the total volume of transactions reaching 56,730 square meters leased, down 12% y-o-y, an ESOP Consulting analysis showed.

On Wednesday the BET index ticked up 0.03% to 8,880.06 points while the BET-TR moved up 0.05% to 14,938.85 points. The BET-FI index was lower by 1.18% to 40,414.79 points. The BETPlus added 0.02% to 1,329.10 points.

In economic news, Romania's current account balance posted a deficit of EUR5.789 billion in the first eight months of the year, compared with a deficit of EUR7.099 billion in the same period in 2019, BNR data showed. 

In industrial news, the country’s industrial production dropped by 13.7% in January-August 2020 y-o-y, INSSE said.

On Thursday the BET index depreciated by 1.15% to 8,777.72 points while the BET-TR fell 1.16% to 14,765.93 points. The BET-FI index slumped 2.00% to 39,606.10 points. The BETPlus weakened 1.15% to 1,313.75 points.

In financial news, the seven private pension funds operating the mandatory segment in Romania, known as Pillar II, had assets totaling RON69.82 billion at the end of September, up 12.67% since the beginning of 2020, financial supervision body data showed. On the banking front, mortgage loans in lei rose to more than RON1.2B y-o-y in August.

On Friday the BET index moved up 1.11% to 8,874.99 points while the BET-TR also added 1.11% to 14,930.07 points. The BET-FI index increased by 1.45% to 40,179.03 points. The BETPlus was up 1.13% to 1,328.54 points.

On the data front, construction works in Romania grew 17.3% YoY In January-August 2020 INSSE said. Romania ranks 14th in the EU regarding new car registrations in the first eight months of the year, with 84,601 units, 31.8% fewer than in the same period in 2019, data from the European Automobile Manufacturers Association (ACEA) and the Association of Automotive Manufacturers in Romania (ACAROM) showed.

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:

  • Transelectrica’s Supervisory Board has extended provisional members' terms by two months.
  • Alro SA announced on Monday that the United States Department of Commerce has determined an anti-dumping tariff of 83.94% on aluminium sheets made by the company applicable immediately.
  • Sphera Group has appointed on Wednesday Lucian Hoanca to the position of Chairman of the Executive Board.
  • MedLife announced on Friday that it took full shareholding of Bucharest-based Ghencea Medical Center after completing its shareholding package with an additional 10% stake, thus reaching 100%.