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Romania: Stock Exchange Index at the highest level of all time

The Bucharest Stock Exchange, ranked as an emerging market by the rating agency FTSE Russell, reached an all-time high on Tuesday after the main BET index broke the record of 10,813 reached on July 24, 2007 and closed at 10,844, 45 units.

According to Ziarului Financiar, this is the highest level in the 24-year history of the first Romanian stock exchange, an indicator of the dynamics of the local stock market.

Influenced by the development of European stock markets, but also by that of the US, the main BET index rose by 0.56% on Tuesday, an increase of about 10.5% since the beginning of 2021.

“It’s a source of joy for the entire capital market community. It is the result of the work of all those who are interested in the capital market, companies and, in particular, investors. A very important factor in this development are the significant dividends distributed by the companies listed on the BVB, given that the BET-TR index, which also includes dividends, has already been at historically high levels for several months. The outlook for the current year is promising, as we see attractive dividend estimates, some still very good compared to low deposit rates. “At the same time, the inclusion of some Romanian companies in the FTSE Russell indexes will continue to place Romania in an optimistic light in front of investors,” said Radu Hanga, President of BVB.

Adrian Tănase, CEO of BVB, said that this new historic ceiling is a confirmation that they are on the right track in the development of the Romanian capital market: “Growth space is being created, they should be used only by market participants . We continue our efforts to improve the liquidity of the entire market, we see that intermediaries become “Market Makers”, the number of investors increased significantly last year by almost 12,000 to 66,000, and at the same time we are considering a series of initiatives to stimulate the visibility of publishers, such as covering as many companies as possible through analysis reports and promoting ESG standards among listed companies. In the context of this positive development, the plan for establishing a Central Contractor in Romania is very important for creating the conditions for maximum efficiency of the local capital market. “

The main index reached an all-time high exactly one year after Romania entered a state of emergency, which was reflected in the Bucharest Stock Exchange. For example, on March 16, 2020, the key BET index collapsed by 9.6% to 7,126 points in the context of stock market fears. Since then, the index has risen significantly, by about 53%.

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