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Bucharest Stock Exchange Weekly Review 18-22/01/2021

posted onJanuary 23, 2021

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), dropped 0.26% to 10,183.99 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also fell 0.26% to 17,146.21 points. 

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, advanced 0.20% to 44,202.68 points. The BETPlus index declined 0.25%, to 1,520.25 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 RON801.7 million (EUR164.5 million) selling bonds maturing in September 2021 at 3.09% average yield, National Bank of Romania (BNR) data showed. 

On the macro side, the National Strategy and Prognosis Commission has lowered GDP growth projection for 2021 to 4.3% from a previous 4.5%. 

On the media front, Romania's media market dropped 2.7% y-o-y in 2020 to EUR467 million but is seen increasing by 4% in 2021, to EUR485 million, thanks to media investments in digital and TV, according to the latest Media Fact Book published by local media agency Initiative. 

On Tuesday the BET index gained 0.47% to 10,242.51 points while the BET-TR also moved up 0.57% to 17,244.62 points. The BET-FI index declined 0.42% to 44,017.23 The BETPlus was higher by 0.57% to 1,528.9 points.

In retail news, foreign chains in Romania are set to open 400 new stores in 2021 and spend EUR700 million to EUR800 million on expansion, on upgrades and logistics, business daily Ziarul Financiar reported citing supplied data. 

In auto news, new car registrations in Romania decreased by 21.8% in 2020, to a total 126,351 units. The country ranked 15th in the European Union, according to data from the European Automobile Manufacturers Association (ACEA) and the association of automotive manufacturers in Romania (ACAROM).

On the HORECA front, luxury hotels revenues in Romania halved to 57 million lei in 2020,  Euromonitor data showed. 

On Wednesday the BET index depreciated by 0.28% to 10,214.06 points while the BET-TR also fell 0.28% to 17,196.70 points. The BET-FI index added 0.48% to 44,226.38 points. The BET Plus weakened 0.24% to 1,525.25 points.

In regulatory news, Romania’s Financial Supervisory Authority (ASF) is seeking to implement a unitary approach for the management of the stock market, insurance and private pension sectors, through the coordination of all services by a general department, according to the watchdog's strategy for 2021-2023.

On the property front, Romania’s real estate investment market showed resilience in 2020, with the volume of transactions reaching EUR914 million, up 28% y-o-y, C&W Echinox said in its Romania Investment Marketbeat report.

On Thursday the BET index increased by 0.97% to 10,313.38 points while the BET-TR also added 0.97% to 17,363.88 points. The BET-FI index moved up 0.85% to 44,601.97 points. The BETPlus climbed 0.96% to 1,539.88 points. 
In fixed income markets, Romania raised RON1.5 billion selling (EUR307.7 million) selling bonds maturing in June 2026 at an average yield of 2.38%,BNR data showed.

In investment news, 2020 was a year marked with 136 deals worth almost EUR3.4 billion inked in Romania, 5% lower in volume and 10% lower in value compared with 2019, the CMS Emerging Europe M&A 2020 report and Ziarul Financiar calculations based on the data showed. 

On Friday, the BET index grew 0.22% to 10,335.95 points while the BET-TR also added 0.22% to 17,401.88 points. The BET-FI index gained 0.26% to 44,718.54 points. The BETPlus was up 0.23% to 1,543.36 points.  

BET index Bucharest Stock Exchange

(BVB's BET index performance Friday 22/01/2021 Graph Source: BVB)

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:

  • OMV Petrom initiated a new offshore drilling campaign in the shallow waters of the Istria block in the Black Sea. The first drilling operations started at the end of December 2020 and the drilling of the second well will start at the beginning of this year. The investment for this campaign is approximately EUR 32 million. 
  • TeraPlast appointed Dr. Lucian Anghel as interim non-executive director. Dr. Anghel has previously served as Chairman of the Board of Governors at Bucharest Stock Exchange.