The drastic drops of all indices of the Bucharest stock exchange represent a reaction to what is happening on other international markets, because they are interconnected, Radu Hanga, the president of the Bucharest Stock Exchange, told Agerpres on Monday.
He emphasized that, if we look at the dynamics of the markets in the last week, we see that the Bucharest Stock Exchange was more resilient.
“What we see on the Bucharest market is a reaction to what is happening on other international markets, because the financial markets are interconnected. The trend is still given by the big markets, however, investors are more careful about the markets in which they choose to invest and If we look at the dynamics of the markets in the last week, we see that the Bucharest Stock Exchange was more resilient, with a 4% decline, slower than other important markets in Europe, such as France (4.6% ), Germany (6%) or Italy (almost 8%). The BET index of the Bucharest Stock Exchange is in a somewhat better position even compared to the markets in the region, most of them recording corrections between 4.7% and 6.7%, the exception being Croatia, which decreased by only 0.4%”, said Radu Hanga.
He specified that these correction periods do not affect the economic activity of listed companies, but create opportunities for investors, because they can buy shares at prices a few percent lower.
“Today’s trading volumes, which exceeded last year’s daily average of almost 31 million euros, show us that some of the investors see these opportunities. Investors are very attentive to the evolution of the global context and government policies, to the evolution of inflation and the dynamics of the economy, as well as the start of a new interest rate reduction cycle, and their reactions are largely influenced by the evolution of the economies and the decisions of the major central banks. The Bucharest Stock Exchange recorded the best evolution among the markets in the region in the last 5 years years, with an increase of 170% in the case of the BET-TR index, that is, the return provided by the increase in share prices plus dividends. inflation,” Radu Hanga also declared.
The Bucharest Stock Exchange opened Monday’s trading session in the red, and at 16:15 it was still in negative territory. The BET index recorded a decrease of 4.28% to 17,637.13 points. The value of the transactions was 207.784 million lei (41.763 million euros). Later, BET increased by one percentage point to minus 3.5%, at around 17:45h, at a transaction value of 250 million lei.