BVB estimates its profit to go up 5 percent in 2014

Newsroom 25/03/2014 | 08:21

The Bucharest Stock Exchange anticipates it will achieve a net profit 5 percent greater on the year, rising to RON 10 million. BVB also estimates that trading will go up 17 percent to RON 13,326 billion.

‘For 2014 we estimate recording a profit of RON 8.9 million, 10 percent up on the year, given that operational revenue is higher and we foresee a stable evolution in prices. Financial profit is estimated at RON 2.69 million, 7 percent down on the year, given that revenue from interest is down and in 2014 there are no dividends coming in from affiliates”, according to BVB’s 2014 budget.

The average daily turnover, including public offers, estimated for this year is RON 53.1 million compared to 44.8 million last year. The IPO value is estimated to drop by 39.3 percent, to RON 2,018 billion. As such, trading alone should reach the value of RON 11,307 billion, up 41 percent compared to the turnover last year.

Bond transactions are expected to go up 2 percent to RON 1,037 billion (including IPOs). Trading in government bonds will increase by 11.2 percent, to RON 420.4 million. At the same time, trading in structured products is estimated to go down 32 percent, and Rasdaq turnover will also decrease by 0.5 percent to RON 258 million.

“Trading revenue for 2014 has been estimated at a level of RON 21.9 million, representing 87 percent of operational income. The biggest share in this revenue category belongs to trading on the regulated stock market (secondary market and public offers). The other categories of financial instruments will remain at a alevel similar to 2013”, the BVB budget shows.