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Evolution of the capital market as of December 31, 2019

Bucharest, April 2, 2020 - All indexes of the Romanian stock market registered positive developments, of over 29%, at the end of 2019, compared to December 31, 2018. The BET benchmark, which captures the evolutions of the most traded companies on the regulated stock market Bucharest Securities (BVB), recorded an increase of approximately 35% on December 31, 2019, compared to the end of 2018.

The BET-TR index, the first total return index launched by BVB, recorded the highest increase at December 31, 2019, at approximately 47%. The lowest growth rate was 29.68%, related to the BET-BK index, which captures the evolution of the shares of local or foreign companies with the highest market capitalization adjusted with the free float factor and the liquidity factor, selected and according to qualitative criteria and listed on the regulated market of BVB.

BET-FI, the index showing the evolution of financial investment companies and other entities similar to them, increased by about 37%. Also, the ROTX index, developed by BVB together with the Vienna Stock Exchange, advanced by 36% as of December 31, 2019 compared to the end of 2018.

In 2019, the cumulative value of transactions on all markets decreased by 14.55%, from 14.23 billion lei in 2018, to 12.15 billion lei in 2019. The lack of offers on the Romanian market of largely due to this decrease in stock market transactions.

At the end of 2019, the market capitalization of the regulated market reached the level of 180.85 billion lei, which is increasing compared to 2018.

As of December 31, 2019, the first place in the ranking of the most liquid companies, whose shares were traded on the BSE on the main market (Regular), is Banca Transilvania (TLV), which holds about 30% of the total traded value. The following positions in this top were classified Fondul Proprietatea (FP), BRD - Groupe Société Générale (BRD), Romgaz (SNG) and OMV Petrom (SNP).

Collective Investment Agency (OPC)

The total value of the assets of collective investment undertakings (UCITS) in Romania was 46.57 billion lei, as of December 31, 2019, increasing by about 18% compared to the level at the end of December 2018. An analysis by categories of collective investment undertakings show that, at the end of the fourth quarter of 2019, the total assets of the open-end investment funds (FDI) increased by about 16% compared to the end of December 2018. The financial investment companies registered an increase of the total assets with about 24%, and Fondul Proprietatea recorded an increase of the total assets of about 16% compared to the end of 2018.

From the perspective of the structure of investments, FDI are mainly oriented towards fixed income instruments (government securities and bonds), while Closed Investment Funds (FFIs), SIFs and FPs have a dominant orientation towards equity investments.

On the whole market, the consolidated structure of investments of all collective investment undertakings, however, indicates a preference for fixed income instruments / money market instruments, the total value of which was, on December 31, 2019, of approximately 22.69 billion lei, accounting for a weight about 49% of the cumulative assets of the OPC. Investments in shares at the level of the entire market amounted to 22.34 billion lei, representing about 48% of the total assets of the mutual fund. As of December 31, 2019, compared to the end of 2018, there is an increase in investments made in shares (+ 23.5%), government securities (+ 36.7%) and UCITS / AOPC securities (+ 16.1%) ), together with a reduction in deposits and availability (-3.9%).

Intermediaries

According to the latest legislative definitions in force, the term "intermediaries" is used for Financial Investment Services Companies (SSIFs) / credit institutions or investment firms that provide investment services and activities.

At the end of 2019, a total of 26 intermediaries were operating on the BVB market, including 18 Financial Investment Services (SSIF) companies, 3 local credit institutions and 5 authorized entities in other EU Member States.

At the end of 2019, within the SMT (Multilateral Trading System), a total number of 20 intermediaries was active, out of which 16 Financial Investment Services Companies (SSIF), 3 local credit institutions and one authorized investment firm in another. EU member state.

At the end of 2019, the most active intermediaries on the BVB (regulated market and SMT) were SSIFs, the value intermediated by them being about 14.55 billion lei. Local brokers (SSIF and credit institutions) made up about 79% of the total intermediary value. Of the intermediaries authorized in other EU Member States, which carried out transactions on the spot markets, the most active were the investment firms, which accumulated a market share of 12%.

The analysis of the Romanian capital market on December 31, 2019 can be found here ( in Romanian language).

 

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About ASF

ASF is the national authority set up in 2013 through OUG 93/2012 approved by Law 113/2013, for the regulation and supervision of insurance markets, private pensions and the capital market. ASF contributes to strengthening the integrated operating framework of the three sectors, which amounts over 10 million participants. More information can be found at www.asfromania.ro.