By the end of November 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 November 2023. The stock exchange emphasized that the value of all companies listed on the BVB is today at the highest level in history, exceeding RON 300bn. In November, the capital market in Romania continued its strong upward trend recorded during the year. BET index further increase by 3.47%. At the end of the first 11 months of this year, the BET index reached 14,712 points, which means an increase of YTD 26.14% was achieved. The BET-NG index of energy and utilities companies rose 26.8% to 1,080 points at the end of November, while the BET AeRO index reached 945 points, up 14.2% YTD. On the back of listing Hidroelectrica [H2O RO Equity], combined with the Government bond program and BVB efforts, the increase in the number of investors to a record level of 168k was achieved.
In November, Romgaz celebrated the 10-year anniversary of its listing on BVB. Further, a good thing to point out is that BVB and the Romanian Association for Investor Relations (ARIR) are proud to present the launch of the first Non-Fungible Token (NFT) on the Romanian capital market in the form of digital art. In this context, ZSE has also announced its future efforts to promote the trading of digital currencies on the stock exchange itself. However, it remains to be seen how the implementation will proceed.
Further, the total trading value of all types of financial instruments on the BVB’s Regulated Market registered an all-time high at the end of the first 11 months of this year, when it exceeded RON 31.3 billion, equivalent to EUR 6.3 billion. The average daily liquidity this year reached RON 136 million, the equivalent of EUR 27.5 million. The third liquidity indicator represented by the number of transactions exceeded, at the end of the first 11 months of this year, 1.6 million transactions.
During November, the highest turnover was recorded by newly listed Hidroelectrica, with EUR 81m, representing 32.2% of the total turnover. Following H20, there is Banca Transilvania at EUR 25.7m, or 10.2% of the total, Fondul Proprietatea, at EUR 24.2m, or 9.6%, OMV Petrom, at EUR 17.9m, or 7.1%, as well as BRD, at EUR 15.8m, or 6.3% of total turnover.
Performance of BET constituents in November 2023 (MoM, %)
Source: Bloomberg, InterCapital Research
In terms of the MoM performance, the largest increase out of the 20 BET constituents was recorded by Transport Trade Services, which grew by double-digit 14.2% MoM. Following TTS, there is Hidroelectrica and Purcari, with 10.3% and 9.5% MoM gain, respectively. Digi at 9%, and Romgaz at 5.4%. Out of the observed companies, 14 out of 20 companies recorded a positive development, while the remaining 6 were in red.
Meanwhile, on a YTD basis, taking the latest data into consideration, 17 out of 20 companies recorded an increase. Leading the way is TTS at 135.6%, followed by BVB at 91.5%, Sphera Franchise Group at 78.6%, Purcari at 69.1%, Aquila at 64.1%, and Digi at 41.9%. The constituent to note the biggest YTD decrease is Fondul. Leading the way in this regard with a 75.6% 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.
Performance of BET constituents* (YTD, %)
Source: Bloomberg, InterCapital Research
*Hidroelectrica’s price change as of IPO in July 2023
At the share price before the announcement, this would imply a DY of 5.5%. The ex-date is set for 5 January 2024.
BRD held its GSM meeting, at which the distribution of 2022 profit was approved. According to the press release, BRD approved payment of RON 642.9m, representing 50% of 2022 retained earnings. On a per share basis, the gross dividend would amount to RON 0.9226. At the share price before the initial announcement, this would imply a dividend yield of 5.5%.
The ex-date is set for 5 January 2024, while the payment date is set for 26 January 2024. Below you can see the historical dividends per share and dividend yields of BRD Bank.
BRD dividends per share (RON) and dividend yields (%) (2016 – 2023)
Source: BRD, InterCapital Research