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), rose 0.38% to 10,783.89 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, moved up 0.39% to 18,162.57 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, added 0.14% to 48,328.16 points. The BETPlus index gained 0.41%, to 1,612.55 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 raised 300 million lei (EUR61.4 million) selling treasury bonds maturing in January 2028 at an average yield of 2.84%, National Bank of Romania (BNR) data showed.
In monetary policy news, BNR held its benchmark interest rate at 1.25% during its Monday meeting, following a 25bps cut in the previous meeting to support the economy.
Of note, inflation spiked above 3% since the beginning of the year on higher energy prices. The deposit and lending facility rates were kept unchanged at 0.75% and 1.75% respectively.
In real estate news, over 24,000 housing units are currently under construction in Bucharest and its surroundings, of which up to 20,000 could be delivered this year, depending on whether real estate developers will maintain their current development rates, according to estimations of “Residential Market Genome 2021” market report by SVN Romania, a real estate consulting firm.
On Tuesday the BET index climbed 0.56% to 10,844.45 points, hitting an all time high as it broke the previous record of 10,813 points, untouched since July 24, 2007. The BET-TR rose 0.57% to 18,265.47 points. The BET-FI index moved up 0.36% to 48,502.65. The BETPlus added 0.56% to 1,621.55 points.
In real estate news, Romanian real estate developers and German retailers were the most active land buyers in Bucharest – Ilfov area throughout 2020, according to the Bucharest Land Marketbeat report by Cushman & Wakefield Echinox.
On the macroeconomic front, Romania's current account balance posted a deficit of EUR239 million in January, compared with a deficit of EUR377 million in January 2020, BNR showed. BNR has revised its inflation forecast for the end of 2021 to 3.4% from a previous projection of 2.5%, the central bank said in its March Inflation Report.
On Wednesday the BET index was down 0.31% to 10,810.53 points while the BET-TR was also off 0.31%to 18,209.65 points. The BET-FI index ticked up 0.05% to 48,526.20 points. The BET Plus was off 0.31% to 1,616.55 points.
In fixed income markets, Romania raised EUR230 million selling bonds maturing in August 2026 at 0.66% average yield on the local market, BNR data showed.
On the macroeconomic front, Romania's public debt hit 47.8% of the GDP at the end of January 2021, at RON503.6 billion, exceeding for the first time the RON500 billion threshold, finance ministry data showed.
The Romanian factoring market reached EUR5 billion in 2020, stable compared with 2019, the Romanian Factoring Association (ARF) said.
In auto industry news, Romania ranked 14th in the EU as new car registrations dropped 39.5% y-o-y in January-February 2021to 12,901 units, data from the European Automobile Manufacturers Association (ACEA) and the association of automotive manufacturers in Romania (ACAROM) showed.
On Thursday the BET index advanced 0.33% to 10,846.64 points while the BET-TR climbed 0.34% to 18,270.74 points. The BET-FI index declined 1.01% to 48,034.37 points. The BETPlus grew 0.38% to 1,622.71 points.
In investment news, Romania will get EUR809 million of new financing from the European Investment Bank and European Investment Fund (EIB) for Higher education, water distribution, energy efficiency and private sector investment.
Meanwhile, the assets managed by private pension funds (Pillar II and Pillar III) stood at RON78.07 billion at the end of 2020, up 21% compared with the end of 2019, financial regulator data showed.
On Friday, the BET index closed up 0.26% to 10,874.42 points while the BET-TR also rose 0.25% to 18.317.14 points. The BET-FI index was higher by 0.35% to 48,204.49 points. The BETPlus was up 0.21% to 1,626.14 points.
In investment news, foreign investors operating on the Romanian financial market injected over RON200 million (around EUR42.3 million) as capital into their local subsidiaries in 2020, down 73% y-o-y when when capital inflows stood at RON744 million, Trade Registry Office data showed.
On the banking front, the government decided to allot RON1.5 billion for this year's state-guaranteed mortgage lending program, which allows home-buyers to buy homes of up to EUR140,000.
(BVB's BET index performance Friday 19/03/2021 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
- MedLife announced the acquisition of the majority stake of 60% in Medica Sibiu, one of the important providers of private medical services in Sibiu County, with a turnover of RON3.7 million in 2020.
- Nuclearelectrica plans to distribute RON472M as dividends from its 2020 profit. Romania's nuclear power producer also signed an agreement to acquire assets within the uranium concentrate processing line at the Feldioara Branch of the National Uranium Company.
- BRD Soc Gen has summoned its shareholders to approve gross dividend of RON0.0749/Share, at 0.5% yield. The lender has also deferred the loan repayments of 2,400 retail customers this year under a government ordinance introducing loan moratoriums.
- Electrica seeks to borrow over RON1.7 billion from the EIB, Raiffeisen Bank and Erste to fund investments and acquisitions over the next three years.
- OMV Petrom has summoned shareholders on April 27 to approve the distribution of dividends from the company's 2020 profit. The biggest issuer on the Bucharest capital market by value, seeks to pay 136% of 2020 profit as dividends.