Bucharest Stock Exchange (BVB) main index BET dropped 10.5% in January

The Bucharest Stock Exchange (BVB) has started the year on a declining trend, more pronounced than most markets in the region. In January the main index of BVB – BET – dropped by 10.5%, said BVB in a statement.

BET Total Return (BET-TR) ended January with a similar decline as BET. The BET-TR index is reflecting the evolution of ten most liquid stocks listed on the Bucharest Stosk Exchange, included in the BET and dividends distributed to shareholders by these companies.

The value of transactions with shares climbed in January by nearly 4%, to RON 631.82mn (EUR 139.41mn) compared to December 2015. Turnover of shares is, however, approximately 11% below the level recorded in the same period 2015.

Average daily trading value was almost RON 32mn ( EUR 7 mn) in January 2016, close to that recorded in December 2015.

In January 2016, investors traded in total shares, fund units, bonds and structured products for RON 770mn (EUR 170mn), up by 1.6% over the amount recorded in the same month last year.

The market capitalization of all companies listed on the Bucharest Stock Exchange fell to RON 132.8 bn (EUR 29.3bn) in January 2016. Out of this amount, the market capitalization of Romanian companies was RON 68.7 bn (EUR 15.1bn).

In December, the five most traded shares were: Fondul Proprietatea (FP), Banca Transilvania (TLV), Romgaz (SNG), Electrica (EL) and BRD-Groupe Societe Generale (BRD), with a total value of more than RON 450mn.

Market news

On January 11, the Board of Governors approved the admission of Erste Group Bank as a participant at the BVB trading system, on the regulated market. Erste Group Bank started trading on the regulated market on January 15, 2016. Erste Group Bank is acting as Classical Market Maker for the shares issued by Erste Group Bank and Fondul Proprietatea starting with January 18, 2016. Erste Group is the leading financial services provider in the Eastern part of the EU. Around 46,600 employees serve 15.8 million clients in 2,500 branches in 7 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia and Serbia).

On January 20, BVB organized the seminar “Fluent in Finance” in Cluj-Napoca, with Eusebius Burcas and BT Securities as partner broker. For almost three hours, over 200 people learned how to manage their income, how to reach financial success and the first steps toward an investment in the stock market. The same seminar was held in Timisoara, on January 26, along with partner broker Alpha Finance, which was attended by over 100 people. Persons interested in attending the “Fluent in Finance 2.0 ‘seminars can register directly on the project website: http://fluentinfinance.bvb.ro. Through this program, BVB aims to bring financial education and capital markets closer to those who want to learn more about the stock market and investments on their own.

Over 400 representatives from the capital market, the financial industry and entrepreneurs attended the most important event of the year in the capital market in Romania – Inauguration of the Stock Exchange Year 2016, on Thursday, January 28, organized by the Bucharest Stock Exchange.

Already in its third edition, the gala was a great opportunity for the business community in Romania to meet and reward those who have contributed to the development of the capital market in the previous year and the best initiatives in the field. Eight categories of prizes were awarded:

BVB Member with the highest share in turnover on bonds market in 2015 – BT Securities and Raiffeisen Bank

Local BVB Member with the highest share in turnover on equities in 2015 – Swiss Capital

BVB Member with the highest share in turnover on equities in 2015 – Wood & Company, Prague

Best price evolution on BVB Markets in 2015 – IAR Brasov

Best equity analyst in 2015 – Patrick Barbulescu, IFB Finwest – public vote

Best broker for retail in 2015 – BT Securities – public vote

Best educational initiative in Capital Markets in 2015 – Fluent in Finance – public vote

Capital Market Institution of the Year – Banca Transilvania