ANNUAL REPORT 2015
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
BUCHAREST STOCK EXCHANGE
It’s worth looking at Romania not as a stereotype, but to see it as it is:
increasingly modern and prosperous, offering potential for growth and
development for business above the average at European level.
Ludwik Sobolewski
CEO
Attracting new companies to be listed on the
market and building a strong investors base are top
priorities for BVB. With these matters addressed,
BVB targets to become a source of companies’
financing, thus generating a multiplication effect
in the economy. Romania’s objective to be classified
as an emerging market is more urgent and the
involvement of all important market stakeholders
is needed. And this perspective of the local capital
market is closely monitored by the international
investment community. Even though there were
reached significant improvements at the qualitative
criteria imposed by global index providers on
becoming an emerging market, the quantitative
criteria are impossible to be reached without
continuing the SOEs privatization through the
capital market. The major quantitative criteria is
the existence of 3 large blue-chip companies, which
have to cumulatively fulfill a series of size and
liquidity conditions.
The new law on the capital market has removed a
series of provisions which kept Romania far behind
the emerging economies in Eastern Europe. The new
key HigHligHts Of tHe year
Companies and market capitalization
Number of listed companies
Domestic companies
Foreign companies
Number of new listings
Domestic market capitalization (USD million)
Trading
Value of share trading (USD million)
Number of share trades (thousand)
Value of bond trading (USD)
Number of bond trades (thousand)
Indices
BET
BET-TR
BET-XT
BET-FI
31.12.2013 31.12.2014
83
81
1
1
35,233 83
81
1
2
41,232
3,901
11,615,242
294,321,396
170 3,390
13,087,904
415,895,139
203
7,083.00
7,734.89
638.20
30,283.31 6,493.79
6,755.90
600.27
31,291.82
legal framework simplifies the way investors and
shareholders express their votes. It also introduces
a safer and faster way of distributing the dividends
for the companies listed on the stock exchange.
However, I trust that the new regulations on taxing
dividends and the gains from trading on the stock
market are going to be improved soon. The capital
market needs to be and to be seen as an engine
for growth. That’s why it should be proactively
regulated.
Energy and utilities shares are among the most
traded on BVB. They account for a combined 53%
of BET Plus index capitalization (see the chart
above). The largest companies (OMV Petrom,
Romgaz, Nuclearelectrica, Transgaz, Transelectrica
and Conpet) have traditionally paid dividends over
the past years, with an average dividend yield of
more than 9% in 2014 (calculated at using ex-date
prices and dividends paid in 2014 from 2013 net
profits). In addition, a similar analysis based on
Bloomberg estimates revealed an average dividend
yield of 7.2% for 2015 (based on dividends to be
paid in 2015 out of 2014 net profits and prices as of
February 6th, 2015).
Three new companies were privatized starting
with the third quarter of 2013. The Romanian
Government sold 10% in Nuclearelectrica (nuclear
power generation), 15% in Romgaz (natgas
production) and 51% in Electrica (electricity
distribution). A pipeline of several other companies
is under preparation.
ABOUT BUCHAREST STOCK EXCHANGE
Established: 1995
CEO: Ludwik Sobolewski
Address: 34-36 Carol I Blvd, 14th Floor, Bucharest
020922, Romania
Contact name: Mariana Ciurel
E: [email protected]
W: www.bvb.ro
FULL MEMBERS
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