By the end of May 2023, BET slightly decreased by 0.3% MoM, amounting to 12,229.51 points. Looking at the latest price developments, compared to the start of the year, the index grew by 2.7%.
The Bucharest Stock Exchange has published the latest trading activity report, for May 2023. Regarding the highlights, the Stock Exchange notes that all of the indices were in the positive territory, with BET-TR (total return) index increasing by 7.2% YTD, while the energy and utilities index, BET-NG, increased by 10.7%. In terms of the main index on the exchange, BET, it grew by 2.7% since the start of the year looking at the latest price developments. However, during May the index decreased slightly by 0.3%.
BVB also noted that after 14 consecutive quarters of growth, a new high was reached in terms of the number of investors in the capital market with more than 140,000 investors present on BVB. Also, the total trading value with all types of instruments of RON 7.5bn fell on a YoY level as investors are waiting for the listing of Hidroelectrica!
BVB CEO states that the IPO of Hidroelectrica will be the most imporant event in the coming period for Romania from an economic point of view. With the successful completion of the largest IPO ever made in Romania, important implications should be achieved with Romania gaining Emerging Market status by MSCI.
During the extraordinary Index Committee meeting within the Bucharest Stock Exchange, which took place on May 12, 2023, decisions were approved regarding the inclusion of Hidroelectrica’s shares in the BVB’s indices starting with the first trading day of the company’s shares.
In terms of equity turnover, it recorded a significant MoM growth of 53.3%, amounting to RON 697m. Meanwhile, on a YoY basis, it just slightly increased. Finally, during May 2023, 22 working days were recorded, which would mean that the average daily turnover amounted to RON 31.7m.
Performance of BET constituents in April 2023 (MoM, %)
Source: Bloomberg, InterCapital Research
In terms of the performance of the BET constituents, the largest increase on an MoM basis was recorded by One United Properties, whose share grew by as much 15.9%, followed by Nuclearelectrica also with double-digit growth of 12.3%. Sphera Franchise Group is to follow at 7.6% growth, Romgaz at 4.6%, Transport Trade Services at 3.8%, Aquila at 1.7%, and Transelectrica at 0.4%. On the flip side, the largest decrease was recorded by Transgaz, which lost 26.8% of its value, followed by Conpet at 8.4%, and Teraplast at 4.5%. In total, 8 index constituents recorded positive returns in May, while the rest of them noted negative price development.
YTD performance of BET constituents in 2023 (%)
Source: Bloomberg, InterCapital Research
On a YTD basis, the story is more positive. A good few number of BET constituents noted a strong double-digit growth. The largest increase was recorded by BVB, whose share increased by 35.4%, followed by Sphera Franchise Group at 26.4%, Transport Trade Services at 25.7%, Aquila at 23.2% and Purcari at 20.8%. In total, almost half of the index constituents recorded >10% returns in this period, while the biggest recorded decline was recorded for Teraplast with 8.4% share price decline.
