The volatility in international capital markets also manifested itself in Romania, as investors reanalyzed the risks generated by the current context. On the Bucharest Stock Exchange (BVB), more transactions were made last month when compared to May 2021, but against the background of smaller volumes. Thus, almost 118,000 transactions were made last month on BVB, 44.6% more than the same month last year. By contrast, the monthly trading value on the stock segment was 2.5% last month below the level of May 2021 and reached RON 685 million. The average daily value of transactions in the share segment suffered a sharper decline, of 11.3%, and reached a level of RON 31.2 million.

For the first five months, the investment activity intensified on BVB causing the trading value for all types of financial instruments to increase by 35.7% and to exceed RON 10 billion, the equivalent of EUR 2 billion. The average daily liquidity for all types of financial instruments reached RON 96 million, approximately EUR 19.5 million, which corresponded to a growth rate of 36% compared to the same period last year. The investors trading on BVB became much more active in January-May this year and introduced 57.8% more sell-buy orders than in the same period last year. Thus, 697,000 transactions were made in the first five months of the year.

”The visibility and notoriety of the Bucharest Stock Exchange remain on an upward trend. Last year was a record year for BVB, we had 23 companies that came to the stock exchange, and this year we already have 9 newly listed companies. We also notice a greater representation of the stock market in the daily life of Romanians: almost 90,000 people already make transactions on the stock exchange through an authorized broker. The Romanian Stock Exchange demonstrates that it has the ability and the strength to contribute to the economic development of Romania, whilst consolidating its status as a solid and efficient financing platform for the state and for private companies and representing an intelligent saving alternative through the degree of diversification it offers to investors,” said Radu Hanga, President of the Bucharest Stock Exchange.

”The investors present on the Bucharest Stock Exchange have adopted a wait-and-see attitude in a rather complicated regional and global context. However, more transactions took place but at a lower trading value, which indicates that there is an expectation to see a series of much clearer signals that validate or not the investment strategy. Those with a long investment horizon benefit from the current context. The stock exchange has become a much more appealing platform for the Romanians’ savings because the offer of companies listed on BVB has become more and more diversified. In addition to financial and energy companies, we see a very good representation of listed companies in the field of technology, but also construction materials or agriculture,” said Adrian Tănase, CEO of the Bucharest Stock Exchange.

The intensification of the investment activity was also possible due to the increased interest shown by more and more Romanians, who chose to become investors and to trade the financial instruments listed on BVB. According to the Investor Compensation Fund (FCI), by the end of the first quarter, the number of investors had reached 88,000. Compared to the end of March 2021, the number of direct investors increased by 24%.

Florin Cepraga, Senior PR Specialist, Bucharest Stock Exchange

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