Saxo Bank analysis: Bucharest Stock Exchange coped well with Brexit impact

Newsroom 14/07/2016 | 12:14

The Bucharest Stock Exchange (BVB) has coped well with the impact of the results of the June 23 referendum in the UK, compared to other countries in the region, a Saxo Bank analysis reveals. However, the bank’s experts argue, the level of market capitalization and trading volumes remain weak.

According to data on the performance of the BVB in the first quarter of 2016, the BET index decreased by -7.6 percent. Regarded in a European context, experts argue that the decrease does not represent a poor performance.

If we were to look over the fence at our western neighbours, the evolution from 1 January 2016 and until now, we have nearly -23pct în Italy, -8pct -10pct în Spain. France and Germany are between -5pct and -1pct, still in negative territory, even Denmark is in the same area,” Laurentiu Nedelcu, Central and Eastern Europe Manager at Saxo Bank, said in a press release.

Compared to other countries in the region, the Bucharest Stock Exchange has overcome the Brexit hurdle. Leaving this aside, the level of market capitalization and trading volumes remain anemic, behind countries such as Poland, Hungary, if we were to compare ourselves with our closest neighbors,” Nedelcu argued.

According to Nedelcu, Romania has posted a “healthy” economic growth, however, this has yet to reflect on the performance of the BVB. “Romania has a healthy economic growth seen in a European context, however, this increase has not yet managed to give enough impetus for a transformation of the stock market into a modern, dynamic, liquid, which, of course, would act as an additional catalyst for that very same economic growth and attracting considerable sums from foreign investors that currently regard the BVB with reserve,” the expert explained.

Georgeta Gheorghe

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