By the end of October 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 October 2023. Starting off first with a couple of highlights, the number of investors present in the Romanian capital market reached a new all-time high: 168,000 investors, a 200% increase over five years ago. As stated by BVB’s management, Thanks to Hidroelectrica’s IPO, BVB is the only stock exchange in Europe included in the Top 5 IPOs unfolded globally so far this year. This year alone, BVB had 35,000 new investors due to the unfolding of Hidroelectrica’s offer and the continuation of the Fidelis bond program.

The BET index of the Bucharest Stock Exchange (BVB) reached 14,218 points at the end of October, slightly down compared to the previous month, but with an advance of 21.9% since the beginning of this year. The BET-TR index, which also includes dividends, ended the first 10 months at a level of 29,362 points, or an increase of 29.4% since the beginning of the year.

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 10 months of this year, when it exceeded RON 29.4 billion, equivalent to EUR 5.9 billion. The average daily liquidity this year reached RON 141 million, the equivalent of EUR 28.5 million. The third liquidity indicator, represented by the number of transactions exceeded, at the end of the first 10 months of this year, 1.45 million transactions.

During October, the highest turnover was recorded by newly listed Hidroelectrica, with EUR 74.8m, representing 27.2% of the total turnover. Following H20, there is Banca Transilvania at EUR 45.1m, or 16.4% of the total, Fondul Proprietatea, at EUR 12.1m, or 12.1%, OMV Petrom, at EUR 22.8m, or 8.3%, as well as Romgaz, at EUR 21.6m, or 7.9%.

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

Source: Bloomberg, InterCapital Research

In terms of the MoM performance, the largest increase out of the 20 BET constituents was recorded by Fondul, which grew by 16.76% MoM. Following Fondul, there is BVB and BRD Group, with 7% and 4.5% MoM gain, respectively, ONE at 3.1%, and Alro at 2.3%. Out of the observed companies, 11 out of 21 companies recorded a positive development, while the remaining 10 were in red.

Meanwhile, on a YTD basis, taking the latest data into consideration, 17 out of 21 companies recorded an increase. Leading the way is TTS at 110.3%, followed by BVB at 69.4%, Purcari at 63.3%, Aquila at 60.5%, and SFG at 45.7%. The constituent to note the biggest YTD decrease is Fondul. Leading the way in this regard with a 74% 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

In October, passenger car registration in the EU increased by 14.6% YoY, totaling 855,484 units. Meanwhile, looking at the numbers since the beginning of the year, EU registration of new cars increased by 16.7% YoY overall. In Croatia in the mentioned period, passenger car registration reported an increase of 31.3% YoY.

New total car registration per month

Source: ACEA, InterCapital Research

In October 2023, passenger car registration in the EU increased by 14.6% YoY, totaling 861,062 units. The largest increase reported in the EU in October was in France, where the absolute increase amounted to 27.4k units, representing an increase of as much as a 21.9% YoY increase. France is followed by Italy at 23.2k units (20% YoY). Next up is the UK where the increase was 19.2k (14.3% YoY). Finally, there are remaining major regions within the EU, those being Germany and Spain. Germany reported the least pronounced growth of 10.3k units (+4.9% YoY), while the growth trend in Spain amounted to 11.9k (18.1%). Looking at the majority of months before, Germany reported the most pronounced growth. However, during September, Germany noted a flat development with a 0.1% YoY decline during the month, while the latest data show that the growth trend continued.

When observing on a YTD basis, the situation is pretty similar – EU registration of new cars increased by 16.7% YoY. However, the previous year was influenced by the semiconductor shortage, which started all the way back in 2021. Consequently, most EU markets showed strong growth compared to previous years. When observing the whole period, each of the major markets within the EU noted a positive development. Germany reported the most pronounced absolute growth (amounting to a relative 13.5% YoY), while the remaining major markets, Italy, France, and Spain follow Germany all noting a strong double-digit growth of 222.9k, 204k, and 123k, respectively, coming both from low base effect & real recovery in the sector. Smaller regions mostly noted double-digit growth. In October, a few smaller countries reported a YoY decrease in units.

Looking at the region, when observing the whole YTD period, Croatia reported an astounding increase of 31.3% YTD, amounting to a growth of 11.8k units. Slovenia reported lower numbers, recording a 5.1% growth, amounting to 2.1k units.

New car registration by power source

Source: ACEA, InterCapital Research

During October, the EU petrol car market grew by 8.1%, although its market share contracted from 35.4% to 33.4% compared to the same period last year. Hybrid electric market share increased by as much as 5 p.p. YoY to 28.6%. On the other hand, the EU’s diesel car market continued its decline in October, decreasing by 13.2%. Finally, overall the EU diesel car market continued to decline during the month from 15.9% market share to the current 12%.

Here you can find the dates for the upcoming events of the regional companies.

Due to the nature of these events, they are subject to change (might be postponed or canceled).