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Investing activity intensifies on Bucharest Stock Exchange. The average daily trading value goes up by 37 percent and the market reaches new all-time highs

6/10/2021

  • The average daily value of transactions performed on BVB with all types of financial instruments doubled in May. The stock market liquidity increased by 37% in the first 5 months.
  • The growth of investment activity led the capital market to new all-time highs in May for BET and BET-TR indices. After the first 5 months of the year, BET increased by 16% and BET-TR by 19%.
  • Radu Hanga, BVB President:
    • Bonds have become the new flagship instruments of the Romanian stock exchange, and the average daily value achieved by the bond segment has increased significantly.
    • Romanians have begun to move money from deposits to the stock market, in search of higher returns, a fact highlighted by the liquidity structure of the capital market.
  • Adrian Tanase, BVB CEO:
    • Thousands of Romanians have become investors for the first time and have started trading on the Bucharest Stock Exchange attracted by the opportunities offered by the listed companies.
    • Almost 280 companies will be able to benefit from support for listing in the next 5 years through the National Recovery and Resilience Plan, and the stock market can propel their development.

 

The investors operating on the Bucharest Stock Exchange (BVB) intensified their trading activity in May, which led to a surge in the average daily values on all types of financial instruments compared to April. On the shares segment, the daily liquidity was RON 35 million in May compared to RON 33 million a month ago. The most important growth rate was recorded on the fixed income instruments segment, which exceeded RON 56 million in May. The average daily value of transactions performed on BVB with all types of financial instruments increased by 137% compared to April, from RON 39.5 million to RON 93.9 million. Over the first 5 months, the liquidity of the capital market in terms of the average daily trading value reached RON 70.9 million, increasing by 37% compared to the first 5 months of the previous year.

The growth of investment activity led the capital market to new highs in May. In the trading session of May 12th, the BET index reached an all-time high of 11,763 points, and on May 24th the BET-TR index displayed a new record of 19,986 points. The month of May continued the monthly series of increases with a surge of 0.8% for BET and 2.8% for BET-TR. After the first 5 months of the year, BET increased by 16.6% and BET-TR by 18.9%.

“Looking at the liquidity structure of the Romanian stock market reflected in terms of the average daily trading value, we notice that May brought increases on all types of financial instruments. At the same time, market data show that bonds have become the new flagship instruments of the stock market, and the average daily value achieved by the bond segment has increased significantly. The bonds attracted an additional RON 50 million in a single month, which is a possible signal that Romanians have begun to move money from deposits to the stock market, in search of higher returns, a fact highlighted by the structure capital market liquidity,” said Radu Hanga, President of the Bucharest Stock Exchange.

“Thousands of Romanians have become investors for the first time and have started trading on the Bucharest Stock Exchange attracted by the opportunities offered by the listed companies. In almost 12 months, 15,000 new investors have opened trading accounts, according to Investor Compensation Fund data. Increasing the participation of the population in the investment phenomenon is one of the fundamental objectives of BVB and we are glad that this objective is also supported by the authorities. The medium-term development prospects of the stock market also show an increasing number of issuers of financial instruments. In addition, almost 280 companies will be able to benefit from support for listing in the next 5 years through the National Recovery and Resilience Plan, and the stock market can propel their development,” stated Adrian Tanase, CEO of BVB.

The investment activity at BVB continues its upward trend in the first part of 2021, after the record results obtained in 2020 when the investors active on the Romanian stock exchange traded financial instruments totaling RON 18.3 billion, the equivalent of EUR 3.77 billion. It was the highest annual value ever recorded on the main segment of the Romanian stock market, and exceeded by almost 25% the previous record from 2007. In September 2020, the global index provider FTSE Russell promoted Romania to the Emerging Market status.

The capitalization of the local companies listed on BVB has gone above the pre-pandemic level. Thus, the Romanian companies listed on the Main Market of BVB have reached a market value of RON 120 billion or EUR 24 billion.