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), lost 0.50% to 8,750.75 points. The BET-TR index, which also includes the dividends offered by the companies from the BET index, fell 0.52% to 14,714.79 points.
The BET-FI index, which tracks the five SIFs and the property restitution fund Fondul Proprietatea, decreased by 0.30% to 39,692.99 points. The BETPlus index was off 0.54%, to 1,309.56 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 415.5 million lei (EUR85.2 million), versus its RON300 million target, selling bonds maturing in October 2030 at an average yield of 3.56%, according to central bank data.
In currency news, CFA analysts see the Romanian leu falling to 5 units versus the euro within the next 12 months and GDP contraction at 4.5% in 2020.
On Tuesday the BET index rose 0.38% to 8,784.14 points while the BET-TR also added 0.38% to 14,771.11 points. The BET-FI index depreciated by 0.04% to 39,707.13 The BETPlus gained 0.38% to 1,314.51 points.
In fixed income markets, Romania's finance ministry raised EUR1.647 billion, more than double its target, selling euro-denominated bonds maturing in November 2022 on the local market at an average yield of 0.39%, according to central bank data.
Romania's general consolidated budget posted a deficit of RON67.27 billion, or 6.36% of the gross domestic product in January-September 2020, finance ministry data showed.
On Wednesday the BET index was lower by 1.32% to 8,668.45 points while the BET-TR weakened 1.33% to 14,575.31 points. The BET-FI index was lower by 0.50% to 39,508.07 points. The BETPlus was off 1.35% to 1,296.82 points.
In real estate news, housing prices, demand, supply and real estate deals recovered visibly in the third quarter of 2020 after the lifting of Covid19-related restrictions, as per a market report by the platform Imobiliare.ro
On Thursday the BET index depreciated by 1.30% to 8,555.65 points while the BET-TR also fell 1.30% to 14,386.13 points. The BET-FI index lost 1.57% to 38,886.29 points. The BETPlus weakened 1.24% to 1,280.80 points.
In politics, Romania will not shut down its economy as it did during the two-month state of emergency in spring, finance minister Florin Citu said in a radio interview.
In tax-related news, Romania had the second lowest tax-to-GDP ratio (26.8%) in the EU in 2019, Eurostat data showed.
In real estate news, the industrial space sector was the champion of the market this year and companies in retail and related services, namely logistics and delivery, were the most active investors, a report by CBRE consultancy Thursday.
On Friday the BET index was off 0.53% to 8,510.37 points while the BET-TR dropped 0.53% to 14,309.45 points. The BET-FI index increased by 0.50% to 39,080.17 points. The BETPlus was off 0.51% to 1,274.31 points.
On the insurance front, the insurance market ended the first half with 100.9 million lei profit, up 51% year-over-year, according to data by the Financial Supervisory authority (ASF)
In labour market news, Romania’s unemployment rate stood at 5.2% in September, data from the National Institute of Statistics showed. Meanwhile, the country’s job market stays active as companies had 73% more job applications for open positions in October compared with October 2019 and 5% more compared with September, data from online recruiting platform BestJobs showed.
In real estate news, over 90% of office tenants paid their due rent on time in the third quarter, Colliers International consultancy said.
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:
- TeraPlast Bistrita seeks to pay a gross dividend of RON0.026 per share for the first nine months of the year, respectively a yield of 6.2%. The total amount allotted for the payment of dividends reaches RON45.3 million.
- The group’s net profit grew 80% year-over-year in the period under review to RON60.3M while its turnover grew 14%, to RON816 million.
- Fondul Proprietatea seeks to launch a public tender offer to buy back maximum 165 million of its own shares and has engaged Swiss Capital S.A. together with Auerbach Grayson as agents and Swiss Capital S.A. as intermediary.
- OMV Petrom reported loss in the third quarter of the year, while profits fell 70% in the first nine months of 2020, to RON826 million.