The Bucharest Stock Exchange (BVB) closed last month at 8,080 points for its main index BET, comprising the most traded 13 companies from the Main Market excluding the Financial Investment Companies, after having breached the 9,000-point ceiling in April.
The corrections following the ex-dividend data for some companies included in the BET index, the public messages regarding the future of Tier II private pensions and the turmoil in the foreign markets were among the causes of the market drops in May, according to analysts. At the end of the first five months this year, BET index still managed to keep a 4.2 percent growth.
“The robust market growth from earlier this year managed to keep the stock exchange in Bucharest in positive territory by the end of the first five months. The local capital market shows it lacks ‘depth’ as May brought a wave of both domestic and foreign uncertainties, which took by storm a local underdeveloped investors’ community. Therefore, it is our duty to do everything in our power to strengthen this community, especially for retail investors,” said Adrian Tanase, CEO of BVB.
A stronger growth pace was posted by the companies from the BET index if taking into account the dividends they paid to investors. “As the figures for the first five months show, if we consider the markets within the European Union, we see Romania ranking third out of 28 states as it managed to report a significant growth of 6.53 percent for the BET-TR index, which takes into account the dividends. Despite recent uncertainties, BVB stays in the forefront of the dividend yields after the first five months, ahead of other EU stock exchanges from Vienna, Frankfurt, London, Budapest, Warsaw or Prague”, stated Lucian Anghel, President of the Board of Governors from BVB.
Investor activity went up by 14 percent during the January-May period considering the average daily trading value exceeded EUR 10.3 million. Overall, BVB investors achieved total transactions of over EUR 1.1 billion for all the types of financial instruments (equities, bonds, fund units, structured products, etc.).
The stock market capitalization of Romanian companies amounted to EUR 19.8 billion at the end of May 2018, while the capitalization of all listed companies on the Main Market of BVB exceeded EUR 35 billion.