FEAS Yearbook FEAS Yearbook 2017 | Page 51

Yearbook 2017

Organization Overview

Emerging Market Watchlist

As per the decision of FTSE Russell published on the September 29, 2017, the Romanian capital market was maintained on the list of countries that have substantial potential to be upgraded to the Emerging Market status. In case of Romania, the upgrade will depend on the progress with regard to the market liquidity and the presence on the market of largest companies with significant individual liquidity.

Largest dividends in the world

Romanian Capital Market recorded one of the highest dividend yields in the world in 2016 and 2017. BET Total Return (BET-TR) index, which includes the dividends granted by the blue chips listed on BVB, has increased by more than 19% in LCY terms in 2017, reporting one of the fastest growth among all 23 MSCI Frontier Markets Index countries.

Growing Domestic Potential

Pension funds’ total assets (pillar II and III) advanced by 26% in 2017, after a comparable increase of 28% Y-o-Y in 2016. The AuM of the Romanian investment funds (apart from SIFs and FP) equal EUR 5.7 bn as of December 31, 2017. There is a big potential vested in the currently small, but active local retail investors base.

Wide market reforms

Constant work on ameliorating the investment landscape, with focus on: easing investors’ access to the market and fiscal compliance, reducing the cost of the market, improving the servicing of investors’ rights, simplifying procedures related to primary markets for equities and bonds and developing the market infrastructure. New regulations regarding lending & borrowing operations were approved.

Potential privatizations and a pipeline of private companies

Increase in favorable perception of BVB as the financing destination for local entrepreneurs looking for capital, which results in ever-growing pipeline of private companies interested in floating shares or bonds on BVB’s markets. Additionally, rich portfolio of state-owned companies as the state has majority stake in 250 companies. Some are currently pending the privatization. State-owned companies expected to float on BVB are Hidroelectrica and Aeroporturi Bucuresti.

Bucharest Stock Exchange SA

About Bucharest Stock Exchange

Established: 1995

President of the Board of Directors: Mr. Lucian Anghel

CEO: Mr. Adrian Tanase

Address: Bulevardul Carol I nr 34 - 36, etaj 14, sector

2, cod postal 020922, Bucuresti, ROMANIA

Contact Name: Ms. Mariana Ciurel

Email: [email protected]

Website: www.bvb.ro

2017 has been one of the most active and best years in the history of the capital market, both in terms of listings of private companies and of corporate bond listings, thus leveraging the capital market to finance companies and, implicitly, of the national economy.

The development of the domestic capital market is also highlighted by the fact that although few years ago analysts expected a number of companies to be listed on other stock exchanges, in the last 18 months we witnessed their listing only in Bucharest.

In 2017, we had four IPOs worth over RON 1 billion, and at the beginning of 2018 we witnessed the first listing of a Moldovan company on the Bucharest Stock Exchange.

In addition, there were listed nine corporate bond issues of over RON 5 billion, a value that also includes bonds in euro, and it is important to mention here that in 2017, for the first time in the Romanian market, the settlement could be done directly in the European unique currency.

The increase of the listed companies value reached a record of EUR 35 billion. At the same time, the average daily trading volume increased by 32% in 2017 compared to the previous year.

We also had challenges in 2017. The merger by absorption between BVB and SIBEX was a complex project. We have it and we are now operating in the Centenary Year after the principle of one country, one stock exchange.

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Mr. Lucian Anghel

President of the Board of Directors of Bucharest Stock Exchange

By shaping the financial education programs, we try to facilitate to our partners the direct and indirect investments of Romanians in shares listed on the BVB, based on the principle of investment diversification.

The more we increase the level of financial education of Romanians, the better the citizens will live and prosper through what they have saved.

The BVB will also continue in 2018 to increase market liquidity in order to be promoted as an emerging market, on medium term, by global index providers.