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), ticked up 0.01% to 11,213.75 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, also added 0.01% to 18,888.74 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, declined 0.46% to 47,833.17 points. The BETPlus index was up 0.02%, to 1,677.96 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 the macro front, Romania’s government debt stood at 4.2% of the gross domestic product (GDP) in the fourth quarter of 2020, q-o-q, being the country with one of the largest increases in government debt-to-GDP ratio, data from Eurostat showed.
In fixed income markets, Romania raised 659.5 million lei (EUR134 million), versus a RON500 million target, selling bonds maturing in January 2028 at an average yield of 2.8%, National Bank of Romania (BNR) data showed.
On Tuesday the BET index climbed 0.99% to 11,324.71 points. The BET-TR also rose 0.99% to 19,075.64 points. The BET-FI index gained 0.94% to 48,146.69 points. The BETPlus advanced 0.98% to 1,694.39 points.
On the macro front, Romania posted a budget deficit of 1.28% of GDP in the first quarter of 2021, down 1.7% of GDP y-o-y, finance ministry data showed.
On the banking front, private lending in Romania grew 1.8% in March compared with February, to RON290.569 billion, BNR data showed.
On Wednesday the BET index rose 0.65% to 11,398.47 points while the BET-TR moved up 0.65% to 19,199.89 points. The BET-FI index dropped 0.37% to 48,459.43 points. The BET Plus gained 0.66% to 1,705.50 points.
On Thursday the BET index was off 0.50% to 11,342.04 points while the BET-TR also fell 0.50% to 19,104.84 points. The BET-FI index ticked up 0.02% to 48,468.91 points. The BETPlus was down 0.46% to 1,697.66 points.
In labour market news, Romania's seasonally adjusted unemployment rate fell to 5.5% in March 2021, the lowest level since December 2020 and lower by 0.2 percentage points from 5.7% in February 2021, according to data by the National Institute of Statistics (INSEE).
In real estate news, housing price growth in Romanian cities slowed to 3% in the first quarter of 2021, a market report by Imobiliare.ro showed.
Meanwhile, industrial space transaction volume doubled reaching nearly 200,000 square meters during the same period, compared with a year ago Cushman & Wakefield Echinox said.
Of note, in March, residential building permits issued hit 14-year high. Romanian authorities issued 4,456 residential building permits last month, up 39.5% compared with February and 38.2% y-o-y, National Statistics Institute data show.
BVB was closed on Friday due to Good Friday.
(BVB's BET index performance Thursday 29/04/2021 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) one of the largest private medical operators 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.