Bucharest Stock Exchange (BVB) managed to keep a two digit growth by the end of the first half (H1) as June was marked by the dividend season and a series of political uncertainties. BET, BVB’s main index, reflecting the evolution of the most liquid companies, closed at 7,855 points on June 30, which corresponds to a growth of 10.87% for the first half, according to a BVB release.
A bigger growth rate was seen for BET-TR, which includes the dividends from the companies included in BET. As such, BET-TR grew to 10,226 points or 16.85% up at the end of the first six months.
The season of dividends largely impacted the results of June, considering the largest dividend yields exceeded 18 percent. The ranking from below takes into account the dividends granted by June 30, 2017, by the listed companies included in at least one index from BVB.
As the dividend season was on the way, and despite the internal uncertainties that were reflected in the capital market, the average daily trading value remained high. Biggest dividend yields were given by energy companies Oil Terminal (18,3%), Conpet (17,42%), Electroargeş (13,33%), Transgaz (12,94%) and Romgaz (12,42%).
At the end of the first six months, the average daily value of transactions increased by more than 30 percent to EUR 9.68 million. “The first half of the year brought to the investors from the Bucharest Stock Exchange two valuable listings and a dividend season that was remarked by significant yields. The local capital market is setting on a new base, and investors will have with new listings and new products available on BVB in the latter half,” said Ludwik Sobolewski, BVB’s CEO.
“Romania stands out among investors through its dividend yields, but the potential gain from rising stock prices is to be pursued considering the country’s very good economic performance. If the capital market is allowed to follow its normal course then the prospects and development potential in the medium term will not be hurt, and subsequently all the factors directly or indirectly will benefit from the development of the Romanian capital market,” said Lucian Anghel, President of BVB.
Two companies were listed on BVB in the first half of this year. Shares of DIGI Communications (DIGI), important supplier of telecommunication services supplier in Romania and Hungary, started trading on BVB on May 16, 2017, following the largest IPO of a private company on the Romanian capital market. The value of the offering was over RON 944 million (EUR 207 million). AAGES shares (AAG), a company which designs and manufactures induction heating systems for a wide range of applications, began trading on BVB on June 19, following a bid through which shareholders had sold 15% of the company for about RON 5.5 million.
The capitalization of the Romanian companies amounted to EUR 19.25 billion at the end of June, while the capitalization of all the companies listed on BVB exceeded EUR 37 billion.
