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Sunday, July 5, 2020 
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Total trades exceed EUR 1 billion on Bucharest Stock Exchange in the first five months up 20 percent

6/15/2020

  • The total trading value for equities and other financial instruments listed on the Bucharest Stock Exchange (BVB) topped EUR 1.1 billion after the first five months, up by 19.6%.
  • Liquidity as measured by the average daily trading value went past the EUR 10-million ceiling for the January-May timeframe, a 17.9% increase over the same period last year.
  • Radu Hanga, BVB President:
    • The current crisis has highlighted the importance of Romanian companies, and the Bucharest Stock Exchange is an essential pillar for financing their development and the local economy implicitly. Investors’ trading activity on the Bucharest Stock Exchange has intensified during this period. The situation generated by COVID-19 created better liquidity in the market, and the stock market benefited from this volatility.
    • The digitization of the stock market has become more necessary than ever, an aspect highlighted even more by the current context. Improving retail market access, and moving from a paper-based to a digital economy is one of our major goals as we want to accelerate the process of digitizing the local capital market.
  • Adrian Tanase, BVB CEO:
    • Investors took a calm approach to the current situation as compared to what had happened in the market in 2008-2009, and the degree of sophistication of local investors, both institutional and individual, increased significantly. We have noticed divergent evolutions during this period for the listed companies, which tells us that we have a maturing local community of investors, who know how to judge the specific context of each listed company, as the context can be different from one company to another, even under the current conditions generated by the COVID-19 pandemic. In any case, recurring investments even in periods of volatility such as the one we are undergoing should be part of the strategy of any investor who intends to be in the market over a longer period of time.
    • In the medium and long term, at BVB we follow the plans for capitalizing on the potential of the stock market through all the projects we have. The main project is the Central Counterparty, through which we will bring new instruments to the stock market, especially derivatives.

 

The total trading value for equities and other financial instruments listed on the Regulated Market of the Bucharest Stock Exchange (BVB) amounted to RON 5.29 billion or EUR 1.1 billion after the first five months, up by 19.6% over the same period from last year. A strong growth pace was also recorded as far as the liquidity is concerned, as reflected by the average daily trading value, which accounted for EUR 10.16 million for the January-May timeframe, or 17.9% up as compared to last year’s first five months.

"The current crisis has highlighted the importance of Romanian companies, and the Bucharest Stock Exchange is an essential pillar for financing their development and the local economy implicitly. Investors’ trading activity on the Bucharest Stock Exchange has intensified during this period. The situation generated by COVID-19 created better liquidity in the market, and the stock market benefited from this volatility", said Radu Hanga, President of the Bucharest Stock Exchange.

"Investors took a calm approach to the current situation as compared to what had happened in the market in 2008-2009, and the degree of sophistication of local investors, both institutional and individual, increased significantly. We have noticed divergent evolutions during this period for the listed companies, which tells us that we have a maturing local community of investors, who know how to judge the specific context of each listed company, as the context can be different from one company to another, even under the current conditions generated by the COVID-19 pandemic", stated Adrian Tanase, CEO of BVB.

"In any case, recurring investments even in periods of volatility such as the one we are undergoing should be part of the strategy of any investor who intends to be in the market over a longer period of time", BVB’s CEO further said.

As fas as the stock exchange indices are concerned, the local capital market is still below the level posted at the end of 2019, as it was significantly impacted by the corona-crisis. The BET-FI index, which includes the five Financial Investment Companies and Fondul Proprietatea, was the index to post a less severe decline following the first five months, which was 7.8% down in the national currency, thus hitting 40,087 points at the end of the last trading session from May.

The unprecedented situation generated by the coronavirus pandemic that has led to voluntary and temporary shutdowns in several economic sectors highlighted the priorities regarding the digitization process and the implementation of projects able to stimulate liquidity.

"The digitization of the stock market has become more necessary than ever, an aspect highlighted even more by the current context. Improving retail market access, and moving from a paper-based to a digital economy is one of our major goals as we want to accelerate the process of digitizing the local capital market", stated BVB’s President.
The Central Counterparty project takes center stage at BVB. "In the medium and long term, at BVB we follow the plans for capitalizing on the potential of the stock market through all the projects we have. The main project is the Central Counterparty, through which we will bring new instruments to the stock market, especially derivatives", concluded BVB’s CEO, Adrian Tanase.

The capitalization of the Romanian companies listed on BVB amounted to about RON 100 billion or EUR 20 billion by the end of May.