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Bucharest Stock Exchange Weekly Review 19-23/10/2020

posted onOctober 24, 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 up 0.44% to 8,795.07 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, added 0.42% to 14,792.43 points.

The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, increased by 0.22% to 39,810.61 points. The BETPlus index climbed 0.45%, to 1,316.62 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.

On Tuesday the BET index ticked down 0.03% to 8,872.04 points while the BET-TR also slipped 0.03% to 14,925.84 points. The BET-FI index depreciated by 0.84% to 39,843.39. The BETPlus was off 0.04% to 1,328.06 points.

In real estate news, Romania’s property investment market exceeded EUR738 million in Jan-Sept 2020, 31% higher compared with the same period in 2019, Crosspoint Real Estate said in a market report. Office transactions accounted for nearly 93% of the investment volume. 

On Wednesday the BET index was lower by 0.57% to 8,821.24 points while the BET-TR weakened 0.58% to 14,839.83 points. The BET-FI index was lower by 0.65% to 39,585.50 points. The BETPlus was off 0.59% to 1,320.22 points.

On the banking front, lending to the agriculture sector moved up over 12% in August, compared with the same month in 2019, Romania’s central bank data showed.

In labor market news, employees in Cluj are the best paid in Romania in 2020 for the second year in a row, earning 10% above the overall market, the Mercer – Total Remuneration Survey showed. 

On Thursday the BET index depreciated by 0.19% to 8,804.34 points while the BET-TR also fell 0.19% to 14,810.98 points. The BET-FI index lost 0.42% to 39,419.53 points. The BETPlus weakened 0.17% to 1,317.95 points.

On Friday the BET index lost 0.54% to 8,756.94 points while the BET-TR fell 0.55% to 14,729.93 points. The BET-FI index increased by 0.78% to 39,723.10 points. The BETPlus was off 0.55% to 1,310.69 points.

On the banking front, private lending in Romania grew 1.1% in nominal terms and 1.2% in real terms in September compared with August, to RON277.5 billion, central bank data showed.

In investment news, the assets managed by private pension funds (Pillar II and Pillar III) stood at RON72.58 billion (EUR14.8 billion) at the end of September, up 17.96% y-o-y, according to data from Romania's financial market regulator. 

In real estate news, nearly three quarters of investors active on the Romanian land market have closed transactions in 2020 or expect to do so by the end of the year despite sluggish economic recovery and the ongoing pandemic, a survey by Colliers International 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:

  • Transgaz announced on Friday it has completed the modernization works of the gas compressor station in Silistea. Silistea station is one of the main three natural gas compression stations (along with Sinca and Onesti), located on the main transport directions of the national network, which have an installed capacity of about 28.94 MW, with a maximum compression capacity of 15.6 million cubic meters per day.
  • Shareholders of Romgaz on Friday approved the extension of the mandates of interim directors for a period of two (2) months as from their expiration date.