The Bucharest Stock Exchange (BVB) kickstarted 2021 with all stock indices in positive territory, as the Romanian capital market posted significant increases, which exceeded in one month the level achieved throughout the entire 2020. The BET-TR index, which also includes the dividends, went up by 5.1% in January as compared to the December last year. Moreover, BET-TR closed the last trading session in January of this year at a record level of 17,350 points, setting a new all-time high after previously breaking another high of 16,500 points, reached at the end of December last year.

The Romanian capital market demonstrates that it is an essential pillar of financing the local economy, and that both the state and Romanian investors can increase their well-being by participating in the stock market phenomenon. „We are pleased with the recent decision of the Romanian Government to pave the way for the listing of minority stakes in companies in which the Romanian state is a shareholder.

Resuming listings does not mean privatization, but transparency and access to finance, while the state can still retain the majority control in the companies from its portfolio. It is in the interest of the Romanian state to have as many companies listed on the stock exchange as possible because the capital market ensures a climate of performance and transparency, thus contributing to the development of the national economy”, said Radu Hanga, President of the Bucharest Stock Exchange.

In the case of the Romanian state, the listing of minority stakes on the stock exchange has several advantages, both for the issuer and for investors. „The advantages the companies can reap from going public are manifold. Through the rules imposed by corporate governance, the capital market ensures increased transparency in the way the listed companies carry out their activity, efficient management that is accountable to the shareholders, and a correct evaluation of the companies according to the demand-supply dynamic”, stated Adrian Tănase, CEO of BVB.

The Romanian capital market was included, starting from September 2020, in the Emerging Markets according to the classification made by the global index provider FTSE Russell.

Florin Cepraga, Senior PR Specialist, Bucharest Stock Exchange (BVB)

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