Index performance wise, 2019 could be characterized as a successful year for the regional markets. How does this success compare to the previous years?
| wdt_ID | Index | Performance in 2019 |
|---|---|---|
| 1 | BET | 35,13 |
| 2 | BUX | 17,74 |
| 3 | ATX | 16,07 |
| 4 | CROBEX | 15,36 |
| 5 | SBITOP | 15,03 |
| 6 | BELEX15 | 5,25 |
In 2019, almost all regional markets recorded double-digit growth of their respective main index, which can be seen in the table above. Such a performance raises a couple of question such as:
- Is such a performance of regional indices an outlier?
- How often did the indices observe similar performance?
- Are we going to observe the continuation of the positive sentiment in the region?
To answer the first two questions we decided to present you with a graphical overview of the index performance throughout time. The following graphs show yearly return of each index on a spectrum from >-20% to >+20%.
CROBEX (2003 – 2019)
SBITOP (2004 – 2019)
Source: Bloomberg, InterCapital Research
BET (1998 – 2019)
BELEX15 (2006 – 2019)
Source: Bloomberg, InterCapital Research
BUX (1993 – 2019)
ATX (1993 – 2019)
Source: Bloomberg, InterCapital Research
Fondul reported a total NAV of RON 11.87bn (EUR 2.48bn), (+23% YoY) which translates into a NAV per share of RON 1.7339 (+16.2% YoY).
According to the latest NAV report (31 December 2019), Fondul reported a total NAV of RON 11.87bn (EUR 2.48bn), which translates into a NAV per share of RON 1.7339. When comparing it to the same period last year, their NAV increased by 16.2%, while NAV per share increased by 23%. Meanwhile, when comparing MoM, Fondul’s NAV and NAV per share both increased by roughly 10%.
Such a high increase in monthly NAV could arguably be attributed to the revalorization of their largest holding, Hidroelectrica, by roughly RON 0.74bn
When observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for 62.49% of the total NAV.
Furthermore, when compared to the same period last year, the Fund increased their listed equities (+ 2.95 p.p.), while their net cash & receivables decreased by 0.94 p.p. Meanwhile, Fondul’s exposure to unlisted equities decreased by 2 p.p. accounting for 70.46% of the portfolio.
Turning our attention towards the share’s price performance, as of 15 January, the share price amounted to RON 1.225, marking a 47,6% increase YoY. The discount to NAV per share decreased by 12.2 p.p. YoY and currently stands at 27.6%.