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Friday, July 19, 2019 
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Bucharest Stock Exchange drops nearly 5 percent in 2018. Only the total return indices stay positive

1/25/2019

  • Lucian Anghel, BVB President: The Romanian capital market went in the negative territory last year following a drop by 4.77 percent of the BET index. The BET-TR index, which also includes the dividends, managed to stay positive, up by 4.3 percent, which – considering the market conditions from the end of 2018 – can be regarded as an outstanding performance
  • Adrian Tanase, BVB CEO: The investors need the legislation to be predictable in order to fairly evaluate the opportunities offered by the capital market, where Romanian companies representing about 10 percent of Romania’s Gross Domestic Product operate.

 

Bucharest Stock Exchange (BVB) reported a market decline of 4.77 percent at the end of 2018 for the BET index, the main index of the Romanian capital market including the most traded 15 companies. The downward trend was triggered on December 19th, following the public information regarding additional taxation in banking, energy and telecom sectors, as well as changes in the Pillar II pension system. On that day, the BET index plummeted by 11.21 percent, wiping out in a single day the entire increase the capital market had seen in the entire year. Prior to this day, namely from December 18th, to the last trading session of 2018, namely December 31st, the main index of the Romanian capital market dropped by over 12 percent. The Bucharest Stock Exchange ended last year in the red following a nearly 5 percent drop.

Only the total return indices, which also include the dividends, managed to stay on the plus side at end of the year. The BET-TR index, which also includes the dividends paid by the companies in the BET index, posted the largest growth. 

"The Romanian capital market went in the negative territory last year following a drop by 4.77 percent of the BET index. The BET-TR index, which also includes the dividends, managed to stay positive, up by 4.3 percent, which – considering the market conditions from the end of 2018 – can be regarded as an outstanding performance", said Lucian Anghel, President of the Board of Governors at BVB.

"The investors need the legislation to be predictable in order to fairly evaluate the opportunities offered by the capital market, where Romanian companies representing about 10 percent of Romania’s Gross Domestic Product operate. That is precisely why the investors pay special attention to the activities of political decision makers as they influence the business environment and the listed companies", said Adrian Tanase, CEO of BVB.

The average daily trading value for equities went up by 5.4 in RON equivalent in 2018 and exceeded RON 45 million (some EUR 10 million), while the total trading value for all types of financial instruments surged by 1.8 percent and amounted to RON 14 billion (some EUR 3 billion).

The market capitalization of the Romanian companies was EUR 18 billion by the end of the year, while the capitalization of all the companies listed on the Main Market of BVB accounted for EUR 30 billion at the end of the last trading session from December.