Capital market in the first quarter of 2022: Funds preferred equities to fixed income instruments

Bucharest, 15 July 2022 - The Romanian stock market has reacted to the shock of the war in Ukraine, as it has around the world. However, the impact was smaller than the crisis generated by the outbreak of COVID 19 pandemic, and in the long term stock market indices have been on an upward trend. "Against the backdrop of political tensions between Russia and Ukraine, the evolution of the Romanian stock market deteriorated, but not to the same extent as in March 2020, when markets reacted to the economic and social uncertainties generated by the COVID-19 pandemic. Compared to the level recorded at the beginning of 2020, the Romanian stock market indices have had long-term upward developments, except for the two episodes of volatility in the financial markets caused by pandemics or the war in Ukraine", says the ASF Report on the evolution of the capital market in the first quarter of 2022.

In the current inflationary context, unprecedented in the last 15 years, collective investment undertakings (CIUs) have opted for a recalibration of their investments, by increasing investments in equities at the expense of fixed-income forms of investment. "On the market as a whole, the consolidated investment structure of all collective investment undertakings indicates a preference for equities, whose total value is about 26.6 billion lei, reaching a share of about 56% of the total assets of UCIs. Investments in fixed-income financial instruments at the level of the whole market are worth 18 billion lei and represent about 37% of the total assets of UCIs. As of 31 March 2022, compared to the end of 2021, there is an increase in investments made in equities (0.22%) and a decrease in UCITS/AOPC securities (12%), bonds (11%), deposits and cash (2%) and government securities (16%)" highlights the analysis of the Financial Supervisory Authority. 

As regards the number and value of transactions on the Romanian capital market, there has also been an increase. As of 31 March 2022, Banca Transilvania (TLV) is in first place in the ranking of the most liquid companies whose shares were traded on the BVB on the main (Regulated) market, with a share of about 22% of the total value traded. OMV Petrom (SNP), BRD - Groupe Société Générale (BRD), Fondul Proprietatea (FP) and Medlife (M) ranked next in this top.

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About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance, private pension and capital markets. The FSA contributes to strengthening the integrated framework for the functioning of the three sectors, which total more than 10 million participants. More information can be found at www.asfromania.ro.