IC Market Espresso 8 Oct 2021

 
Trading Activity on BVB – September 2021

In September BET increased by 3.84% YoY, closing at 12,645.1 points.

The Bucharest Stock Exchange continued its positive sentiment in September, with BET noting a MoM increase of 3.84% (closing at 12,645.1 points). The average daily turnover in September amounted to EUR 10.8m.

OMV Petrom noted the highest turnover in September of EUR 58.4m, followed by Banca Transilvania with a total turnover of EUR 33.5m and Teraplast with a total turnover of EUR 31.2m

When observing the index constituents, 12 of 17 ended the month in green, with Teraplast leading the list with +38.2%. Nuclearelectrica and Medlife follow with +27.9% and +10.6%, respectively. On the flip side, Sphera Franchise Group leads the losers with a decrease of 11.1%.

Performance of BET Constituents in September (%)

Time Needed to Sell 1% Market Cap on Regional Stock Exchanges

In order to sell 1% of the free float market cap of ZSE, one would need 78 days.

It is a known fact that relatively low liquidity is an ongoing challenge for not just Croatia and Slovenia, but also other regional markets. Some of the reasons behind this could be a relatively low free float of market capitalization, a small investment universe, lack of a large retail investor base, etc.

For today, we decided to calculate how many days one would need, to sell 1% of the total market capitalization of regional stock exchange markets.  The stock exchanges we observed were ZSE, LJSE, BELEX and BVB.

It does not come as a surprise that Romanian stock exchange market is the most liquid, having in mind that average daily turnover was EUR 8.33m (YTD) and market cap EUR 44.14bn. To sell 1% of market cap on Bucharest Stock Exchange, one would need 53 days, which is the lowest of all observed stock exchanges.

Slovenia comes next with a significantly lower average daily turnover of EUR 1.43 in 2021. However, the market cap of the exchange is significantly lower, so one would need 63 days to sell 1% of the market cap.

Meanwhile for ZSE, one would need 178 days to sell the same. However, if we were to take into account the free-float market cap, the figure would amount to 78 days.

Time Needed to Sell 1% Market Cap