Transactions with the shares of companies listed on the Bucharest Stock Exchange (BVB) exceeded half a billion euro in September this year, increasing by over 260% both compared to August 2020 and compared to September last year, following the decision of FTSE Russell regarding the promotion of Romania to the status of Emerging Market, starting with September 21, 2020, BVB announced. The average daily liquidity increased in September by 3.5 times compared to the value from August 2020 or September 2019 and exceeded 25 million euro, according to News.ro.
“The actual promotion of Romania to the status of Emerging Market, according to the classification of the global index provider FTSE Russell, had immediate effects on the Bucharest Stock Exchange. Starting with September 21, Romania became an Emerging Market and was included in several Russell FTSE indices dedicated to emerging markets, and during September the Romanian capital market managed more than a tripling of liquidity indicators. Transactions with the shares of companies listed on the Bucharest Stock Exchange (BVB) exceeded half a billion euro last month, which represents an increase of over 260% both compared to August this year and compared to September last year, when the FTSE Russell decision was published announcing the promotion of Romania. Thus, in September, the trading value on the shares segment was of 2.7 billion lei, the equivalent of 556 million euro. For comparison, in August, the same indicator showed a level of 747 million lei or 154 million euro and in September 2019 it shows 726 million lei or 153 million euro”, BVB states.
At the level of the first nine months of this year, transactions with shares with a cumulative value of 9.64 billion lei or 2 billion euro took place on the Bucharest Stock Exchange. Almost 28% of these transactions were made in September alone.
The liquidity reflected in terms of the average daily trading value last month amounted to 123 million lei, the equivalent of 25.3 million euro. Compared to the previous month, the increase was of 245%, and compared to September 2019 the advance was of 255%. In the first nine months, the average daily trading value exceeded 51.2 million lei or 10.6 million euro.
“Romania’s promotion to the status of Emerging Market was undeniably a historic moment, which had strong echoes not only in the business community or among the political class, but also among ordinary Romanians. I am convinced that many more Romanians have heard of the stock market now and we hope to see them taking steps towards investments in securities. The figures have strongly strengthened the special significance regarding the promotion of Romania to a new status. At the same time, it is necessary to be very sharp: this is the immediate visible effect, but it is essential to have realistic expectations and to take into account the domestic and international context in which we live. In a constantly changing world, the stock market is positioning itself as an essential landmark and pillar for financing the economy. This year, Romanian companies have shown, more than ever, that they have the capacity and determination to adapt their business model, and we have proved, through the stock market, that we can facilitate their access to vital capital to operate even in pandemic conditions,” said Radu Hanga, president of the Bucharest Stock Exchange.
Two Romanian companies, Banca Transilvania (TLV) – the most traded company from BVB – and Nuclearelectrica (SNN) – a listed company in which the Romanian state is the majority shareholder – have met the necessary criteria to be included, starting with September 21, in All-Cap indices dedicated to Emerging Markets according to the classification of the global index provider FTSE Russell.