Trading value with the shares listed on BVB goes up by 60 per cent in the first 7 months

The liquidity recorded at the Bucharest Stock Exchange (BVB) remains at high levels on several pillars after the first half of the year in which significant increases were noted. Still, in July the liquidity returned to summer levels as investors and financial analysts were waiting for the end of the financial reporting season to have a first indication of how Romanian listed companies could perform this year. In the segment of the shares listed on the BVB’s Regulated Market, the total trading value in the first 7 months was RON 8.4 billion, the equivalent of EUR 1.7 billion, which meant an advance of 59.7 percent compared to the same period last year. Within this evolution, the month of July recorded a total trading value for shares ??of RON 872 million or EUR 177 million. This level is 27 percent above that reported in July 2021 but compared to June this year it is 31 percent lower. Regarding the average daily trading value of the shares listed on the BVB’s Regulated Market, the first 7 months of this year reached a level of RON 57.7 million or EUR 11.7 million. This level translates into a growth rate of 60.8 percent compared to the January-July period of last year. The average daily liquidity in the equity segment recorded in July was RON 41.5 million or EUR 8.4 million. Compared to July last year, there was a 33 percent increase, but compared to June 2022, the level is 34 percent lower. 

At the level of all types of financial instruments traded on the BVB’s Regulated Market, the total trading value in the first 7 months reached RON 14.5 billion, the equivalent of EUR 2.9 billion, up 38.9 percent compared to the same period of last year. The average daily trading value for all traded financial instruments exceeded RON 100 million, increasing by 39.9 percent compared to the January-July period of the previous year.

„The Romanian capital market has faced in a mature way the multiple challenges that overlapped during this period. The specifics of our stock market, in which the financial and energy fields are strongly represented, contributed to achieving positive results while other markets are still declining. Moreover, the best performance at the BVB level was recorded by the BET-NG index, which includes energy and utilities companies, with +9 percent in the first 7 months. The ongoing trend to see companies getting listed on the stock exchange is perhaps one of the most important phenomena of this period. Listing is an essential step in the life of any company and the most important lesson learned from these moments is that the stock market remains relevant regardless of the context”, said Radu Hanga, President of the Bucharest Stock Exchange.

„We have experienced an eventful year for the capital market on several fronts, and this has been reflected in the market volatility and liquidity generated in the first part of the year. The capital market in Romania has been positioned much better than other developed markets to deal with the events that have taken place so far this year. From the perspective of the BET index, the market still has to recover to reach positive territory, but from the perspective of the BET-TR index, which also includes dividends, the market is already on the plus side and we have been observing a consolidation of this growth rate. Once the financial reporting season is over, investors will be able to have a first indication of how Romanian companies could go through these moments”, said Adrian Tanase, CEO of the Bucharest Stock Exchange.

The market values of Romanian companies listed on BVB reached almost RON 149 billion, the equivalent of EUR 28.9 billion, at the end of the first 7 months of this year. This level is slightly above the one recorded at the end of last year when the market value of Romanian companies listed on BVB was RON 141 billion, equivalent to EUR 28.5 billion. The capitalization level above that of last year is all the more remarkable in a context dominated by the volatility in the capital markets, but also by a multitude of other external risks regarding the evolution of the coronavirus pandemic, rising inflation, the increase in interest rates, the increase in energy prices, dysfunctions in supply chains as well as fears of a possible recession in developed markets.

The capital market in Romania managed to end the first 7 months in positive territory when looking through the lens of total return indices, which also include dividends. For example, the BET-TR index closed the last trading session in July at a level of 23,835 points, up by 3.1 percent compared to the end of last year. In contrast, the BET index, which includes the 20 most traded companies listed on BVB, is in negative territory, down 4.6 percent from last year. The biggest advance in the first 7 months among BVB indices was 9 percent and it was registered by BET-NG, the index that reflects the evolution of listed companies whose main field of activity is energy and related utilities.