BVB: one million transactions and over 100,000 investors in the first 8 months

Active investors on the Bucharest Stock Exchange (BVB) have bought and sold financial instruments at a very active pace so far this year. More than one million transactions were carried out on the regulated market of BVB between January and August this year. Investment activity was more subdued in the summer months, with July and August being the only months when the number of transactions was below the 100,000 mark. The most active month from this point of view was March, when almost 200,000 transactions were registered in the BVB system. Overall, compared to the 715,000 transactions from January to August 2021, the number of transactions increased by almost 42% in the first 8 months of this year. 

A significant milestone reached by the capital market in Romania was exceeding the threshold of 100,000 investors. After a sustained upward trend in the previous quarters, the number of those trading on the Romanian stock market exceeded 117,000 investors, as shown by the data of the Investor Compensation Fund (FCI) for the first half of this year. The number of investors increased by 33% in the second quarter compared to the first quarter, according to the FCI data. The accelerated increase in the number of investors is determined, on the one hand, by the continued entry of new investors into the capital market, but also by a change in the regulations regarding the reporting of compensable clients.

„We see a growing interest in the Romanian capital market and the investors, both Romanian and international, benefit from an unprecedented sectoral diversification offered by listed companies. Of course, we are witnessing a moderation in the pace of financing caused by a series of risks that influence global markets and by a complicated regional context, but even in a difficult international context, the capital market in Romania manages to reach new milestones and perform. We expect volatility to continue to be present in the market in the period ahead, which will bring opportunities for both investors and companies, and we have signals that Romania is being viewed with interest by companies in the region who consider getting listed on BVB”, said Radu Hanga, President of the Bucharest Stock Exchange.

„We have managed to achieve a series of outstanding performances regarding the Romanian capital market: over 117,000 investors have access to the stock exchange and over 1 million transactions have been performed so far this year. We have provided market participants with safe and stable systems even in conditions of increased volatility, the brokerage community has been active in terms of listings and facilitated investor access by opening online accounts, and the authorities have supported market development projects, which makes us confident in the plans we have for the development of the stock exchange. Romania has become attractive not only among large international investors by consolidating its status as an emerging market, but also among companies from outside the borders who want to access the opportunities offered by the Romanian capital market”, said Adrian Tanase, CEO of the Bucharest Stock Exchange.

The capital market in Romania managed to end the first 8 months in positive territory through the lens of total return indices, which also include dividends. For example, the BET-TR index closed the last trading session in August at a level of 23,438 points, up by 1.4% compared to the end of last year. Last month, BET-TR hit a new record high after ending the August 18 trading session at 24,633 points. In contrast, the BET index, which includes the 20 most traded companies listed on the BVB, is in negative territory, down 7.7% from last year. BET-NG, the index that reflects the evolution of listed companies whose main field of activity is energy and related utilities, slowed its advance recorded in July, but managed to end the first 8 months in positive territory, with +1.8%.

The capitalization of Romanian companies listed on the BVB reached almost RON 137 billion, the equivalent of EUR 28 billion, at the end of the first eight months of this year. This level is slightly below the one recorded at the end of last year and appears in a context dominated by the volatility in the capital markets, but also by a multitude of other risks such as the evolution of the coronavirus pandemic, rising inflation, increasing interest rates, rising energy prices, dysfunctional supply chains, fears of a possible recession in developed markets, as well as a complicated regional context.

At the level of all types of financial instruments traded on the BVB Regulated Market, the total trading value in the first 8 months reached RON 15.3 billion, the equivalent of EUR 3.1 billion, up 34% compared to the same period of the year last. The average daily trading value for all traded financial instruments was RON 91.8 million, up 34.9% compared to the January-August period of last year.