At the end of August 2023, BET recorded an increase of only 0.2% MoM, and 13.7% YTD, amounting to 13,256.21 points. At the same time, the total equity turnover amounted to EUR 241.9m, a decrease of 59% MoM.
Yesterday, the Bucharest Stock Exchange published its latest trading activity report, for the month of August 2023. Taking a quick look at the highlights, in the first 8 months of 2023, the total trading value of all types of financial instruments reached an all-time high of EUR 5bn (RON 24.5bn). This would mean that it exceeded the previous 2 all-time highs, the one for the full year 2021 (RON 20bn), and the one for the full year 2022 (RON 23.2bn). Furthermore, 1 million transactions were exceeded at the BVB, for the first time. Lastly, the Romanian capital market recorded an increase of 13.7% (BET), and 17.8% (BET-TR), which includes dividends, by the end of August 2023.
During the first 8 months, the top 5 most traded companies were Hidroelectrica (RON 2.08bn of turnover), Fondul Proprietatea (RON 1.4bn), Banca Transilvania (RON 1.18bn), OMV Petrom (RON 1.07bn), and Romgaz, with a turnover of RON 418m. In terms of the overall equity turnover, it amounted to EUR 241.9m, representing a decrease of 59% MoM, but an increase of 64% YoY. This would also mean that the average daily turnover amounted to EUR 11m in August 2023, vs. EUR 28.3m last month, and EUR 6.7m in the same month last year.
Performance of BET constituents in August 2023 (MoM, %)
Source: Bloomberg, InterCapital Research
Taking a look at the performance of the BET constituents, in August 2023 on a monthly basis, the largest increase was recorded by BVB, which grew by 16%, followed by OMV Petrom at 13%, Transelectrica at 12%, and Transgaz and TeraPlast, both at 9%. Out of the observed companies, 15 recorded an increase, while 5 recorded a decrease. Fondul Proprietatea recorded the largest decrease, of 79% MoM, but the reason for this is quite specific. App. 80% of the assets under management of Fondul Proprietatea were that of Hidroelectrica. After the IPO, Fondul raised over EUR 10bn. Afterwards, a vote was held on the distribution of this money, in the form of a special dividend. As this dividend had a significant DY (90% prior to the date of the announcement), the drop in price after it was paid out was expected.
YTD performance of BET constituents* (2023, %)
Source: Bloomberg, InterCapital Research
*Hidroelectrica’s price change as of the IPO in July 2023
In terms of the YTD performance, the largest increase was recorded by TTS at 78%, followed by BVB at 73%, Aquila at 60%, Purcari at 47%, SFG at 44%, and OMV Petrom at 43%. In fact, out of all the observed companies, only Fondul Proprietatea and TeraPlast recorded YTD decreases, of 80% and 10%, respectively. As such, 2023 has thus far proven to be a quite good year of returns for the Romanian capital market.
