At the end of June 2022, BET decreased by 1.7% MoM, while on a YTD basis, it decreased by 5.9%, ending June at 12,194.26 points.
The Bucharest Stock Exchange has published its biannual trading data for 2022. In it, they highlighted that in the first 6 months of 2022, over 824k transactions were made (an increase of 57% compared to the same period last year). At the same time, the total equity turnover amounted to EUR 256.1m, which translates into a daily trading turnover of EUR 12.8m.
The higher levels of trading and volatility are something that can currently be recorded on equity markets across the world. The current situation in Ukraine is by far affecting the commodity market (and by extension energy prices) the most, causing inflation. Considering that several of the largest companies listed on the BVB are energy production companies, this increased trading volume is not surprising.
However, the end of June also recorded some positive news from the BVB, as the BET-TR index grew by 0.8% YoY, which would mean that it recovered all the value lost after the start of the war in Ukraine. As expected, the BET-NG index (which tracks energy and related activities), increased the most out of all indices, by 4.82% YoY.
Moving on to the companies which constitute the largest Romanian Index, BVB, only 7 out of 20 companies increased during the month, but at the same time, some of the companies remained quite stable at +/- 1%. Looking at the companies themselves, Romgaz recorded the largest relative increase, growing by 12% YoY, followed by OMV Petrom by 5%, and Sphera Franchise Group, which increased by 3%. On the other hand, Banca Transilvania decreased by 12%, Teraplast by 11%, Aquila by 10%, while BRD decreased by 8%. The decreases in financial companies (Banca Transilvania, BRD) can be attributed to the current macroeconomic situation in Romania, and especially the inflation rate, which hit 15.1% in June, still an increase YoY. To combat this, the Central Bank has been increasing the interest rates, which again, affects the profitability of the financial institutions.
Performance of BET constituents in June 2022 (%)
In total, the BET index ended the month at 12,194.26 points, which is a decrease of 1.7% MoM, and 5.9% YTD.
