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The Romanian stock exchange follows international markets in the downward trend after the first two months amid increased volatility and growing uncertainties

3/10/2020

  • The main international markets nosedived into the negative zone at the end of the first two months this year: In Europa, DAX (Germany) fell by 10.2 percent, CAC 40 (France) went down by 11.2 percent, FTSE 100 (UK) tumbled 12.7%, while US’s Dow Jones dropped by 11 percent, and S&P 500 by 8.6 percent. The Romanian stock market also experienced turbulences and posted a decline of 8.6 percent in the first two months, after the BET index peaked to a 12-year high, and BET-TR saw new record highs.
  • Adrian Tanase, BVB CEO:
    • The Bucharest Stock Exchange, like all the modern stock exchanges, has implemented systems that can cope with excessive volatility and they can be triggered under extreme stress for the markets. Until now, the Romanian capital market has shown resilience in an international context government by growing uncertainties and increased volatility, and the investors have the opportunity to decide how to act or react according to their investment strategies.
    • I think that one of the fundamental things that Romanian investors should take into account when investing in the financial instruments issued by the Romanian companies listed on the Bucharest Stock Exchange is to have the perspective not of occasional buyers of shares or bonds, but of long-term investors in the Romanian economy. This perspective in their investment approach, coupled with a reasonable expectation horizon, may return increased positive results than emotionally conducted transactions.

Most of the main international capital markets went into the red by double digits following the first two months of the year, which can be seen as a correction as compared to previous highs. From the beginning of the year until the end of February, in Europa Germany’s DAX fell by 10.2 percent, in France CAC 40 went down by 11.2 percent, while in the UK FTSE 100 tumbled 12.7%. In the United States, Dow Jones dropped by 11 percent, and S&P 500 by 8.6 percent. The Romanian stock market also experienced turbulences and posted an 8.6-percent decline in the first two months. It came after the BET index had previously peaked to a 12-year high, and BET-TR had sen new record highs.

"The Bucharest Stock Exchange, like all the modern stock exchanges, has implemented systems that can cope with excessive volatility and they can be triggered under extreme stress for the markets. Until now, the Romanian capital market has shown resilience in an international context government by growing uncertainties and increased volatility, and the investors have the opportunity to decide how to act or react according to their investment strategies", stated Adrian Tanase, CEO of the Bucharest Stock Exchange (BVB).

The average daily trading value amounted to EUR 9.6 million at the end of the first two months, while the total trading volume for all the financial instruments accounted for over EUR 400 million at the end of February.

"I think that one of the fundamental things that Romanian investors should take into account when investing in the financial instruments issued by the Romanian companies listed on the Bucharest Stock Exchange is to have the perspective not of occasional buyers of shares or bonds, but of long-term investors in the Romanian economy. This perspective in their investment approach, coupled with a reasonable expectation horizon, may return increased positive results than emotionally conducted transactions", added Adrian Tanase, BVB’s CEO.

By the last trading session in February this year, the capitalization of the Romanian companies listed on BVB amounted to around RON 100 billion or EUR 20.6 billion.