BVB Trading Activity – September 2023

By the end of September 2023, the BET index recorded an increase of 8% MoM and 23% YTD, amounting to a total of 14,336.52 points. Simultaneously, the total equity turnover amounted to EUR 353.1m, representing a 46% increase MoM.

The latest monthly trading activity report has been released by BVB, for the month of September 2023. Starting off first with a couple of highlights, the BET index turned 26 years this September, also reaching an all-time-high value of 14,466 points, an increase of 23% YTD. The report also included an interesting tidbit, stating that if people started investing RON 100 (app. EUR 20) each month in the BET-TR index (which also reinvests the dividends) since the end of 1998, the accumulated value would amount to RON 350k (EUR 50k). This is higher than for example, the S&P500 TR, which would yield a return of “only” RON 185.5k (EUR 37.3k). Furthermore, compared to a bank deposit (12M ROBID), and cash, which would yield returns of only RON 75k (EUR 15k), and RON 29.8k (EUR 6k), the BET-TR index’s return proved to be quite attractive.

Furthermore, the total value of trading of all types of instruments on the BVB Regulated Market also recorded an all-time high of RON 26.3bn, which is equivalent to EUR 5.3bn. In terms of the total equity turnover, it amounted to EUR 353.1m, representing an increase of 46% MoM. This would also mean that the average daily turnover amounted to EUR 16.8m, an increase of 53% MoM. Also of note is the BET-TR index, which recorded an increase of 9% MoM, and 29.3% YTD.

During September, the highest turnover was recorded by Fondul Proprietatea, with EUR 80.6m, representing 22.8% of the total turnover. Following them there is Hidroelectrica at EUR 73.4m, or 20.8% of the total, Banca Transilvania, at EUR 53.7m, or 15.2%, OMV Petrom, at EUR 43.6m, or 12.3%, as well as Romgaz, at EUR 26.5m, or 7.5%.

Performance of BET constituents in September 2023 (MoM, %)

Source: Bloomberg, InterCapital Research

In terms of the MoM performance, the largest increase out of the 20 BET constituents was recorded by BVB, which grew by 25% MoM. Following them there is Transgaz and Transelectrica, both at 15%, respectively, TeraPlast at 14%, and TTS at 12%. Out of the observed companies, only 2 recorded a negative return. Leading the way in this regard is Fondul Proprietatea, with a 78% decrease, but this came as a result of the adjustment of the NAV of the fund due to the fact that it paid out a special dividend, from the proceeds of Hidroelectrica’s IPO. As Hidroelectrica accounted for app. 80% of FP’s total NAV, this was expected to happen.

Meanwhile, on a YTD basis ending in September, 18 out of 20 companies recorded an increase. Leading the way is TTS at 91%, followed by BVB at 86%, Aquila at 64%, and SFG at 51%. Furthermore, on a YTD basis ending yesterday, TTS still leads the pack at 99% return, followed by BVB at 97%, Aquila at 66%, and Purcari, at 47%.

Performance of BET constituents* (YTD ending in September 2023, YTD ending yesterday, %)

Source: Bloomberg, InterCapital Research

*Hidroelectrica’s price change as of IPO in July 2023

Category : Flash News

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