At the end of November 2022, BET increased by 8.6% MoM, while on a YTD basis, it decreased by 7.4%, ending November at 11,730.66 points.
The Bucharest Stock Exchange has published its monthly trading data for November 2022. In it, Stock Exchange highlighted that the capital market in Romania grew by 8.6% through the lens of the BET index. In the last trading session during November, the BET index ended at 11,730 points. The Bucharest Stock Exchange emphasized that mentioned 8.6% increase in the index represents the highest growth rate in almost two years. Also, historically speaking this month represents one of the best months in the BVB’s history. This month represents why investors should not time the market, but should always participate and own equity. Further, the BET-NG index (which tracks energy and related activities), increased by 6% this month, but decreased by 2.2% in the first eleven months of trading due to the very high base, as this index noted the biggest increase in price in the previously observed periods.
The higher levels of trading and volatility 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 resulting in 11.3% more transactions being carried out compared to the same period last year.
Moving on to the companies which constitute the largest Romanian Index, BET, the majority of companies increased during the month. Looking at the companies themselves, Transelectrica recorded the largest relative increase, growing by 19.5% MoM, followed by Banca Transilvania and BRD, which increased by 18.2% and 18.1% MoM, respectively. Further, Sphera Franchise noted an increase of 17.3% during November. On the other hand, One United Properties decreased by 6.5%, and MedLife by 4.7%. The YTD return shows a relatively different picture. 15 out of 20 BET constituents noted a YTD price decrease with Purcari at the bottom of the list with -42.1% YTD return, closely followed by Teraplast with a 41.8% decline. On the other hand, the best YTD performance among all BET constituents is reported by Bursa de Valori and Transgaz, nothing an increase of 35-7% and 20.8% in share price, respectively.
Performance of BET constituents in November 2022 (%)
Source: BVB, InterCapital Research
In total, the BET index ended the month at 11,730.66 points, which is an increase of 8.6% MoM, and a decline of 7.4% YTD.