Increased investor interest in the Romanian capital market

Bucharest, 13 June 2024 – The Romanian capital market continues to perform positively in 2024, reaching new historical highs, reflecting the significant level of interest and confidence it enjoys.

The number of investors in the domestic capital market continued to grow and reached 191,743 at the end of the first quarter of 2024, a new historical high, after the level of 178,545 recorded at the end of last year (+7.4%).

At the same time, the capitalisation of the regulated market managed by the Bucharest Stock Exchange increased by 14.3% in the first five months of this year, from RON 294.25 billion at the end of 2023 to almost RON 336.3 billion at the end of May. The advance was recorded against the backdrop of rising listed share prices, with the main BET index returning more than 14%, and the successful completion of an initial public offering (IPO) of about RON 700 million.

Thus, after recording the largest IPO in Europe in 2023, the domestic capital market again confirmed the high financing potential of the Romanian economy, with the 2024 offering also being oversubscribed on both tranches - retail and institutional.

Positive net subscriptions at UCITS level

Positive developments were also recorded this year in the segment of undertakings for collective investment in transferable securities (UCITS) authorised by the Financial Supervisory Authority (ASF). Positive net subscriptions in this segment reached RON 2.33 billion at the end of May. Moreover, net positive subscriptions on UCITS increased month-on-month, from RON 322 million in January to RON 574 million in May, in the context of record subscriptions in the open and closed-end fund market in 2024.

As regards the structure of UCITS portfolios, it is mainly oriented towards fixed-income financial instruments. Some 58% of subscriptions at the end of May were in funds investing predominantly in fixed income instruments, 23% in equity funds (up from 15% at the end of March), and 19% in multi-asset balanced and multi-asset flexible funds.

The Financial Supervisory Authority is constantly concerned with improving the regulatory framework of the Romanian capital market, given that it can represent a relevant financing alternative for domestic firms to traditional methods.

The capital market needs as many development measures as possible and as rapid intervention as possible through several legislative projects, which will bring concrete benefits both to Romania's economy and to local firms by facilitating access to financing. Thus, ASF aims, among other things, to simplify the procedures for companies to raise capital, increase the possibilities for local authorities to obtain financing on the capital market, but also to protect investors and create an easy investment mechanism.  

ASF is carrying out an extensive and rigorous process to implement the objectives outlined in the National Strategy for the development of the Romanian capital market for the period 2023 - 2026, a very important pillar for the development and consolidation of the domestic capital market.