Yearbook 2019
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: Mr. Radu Haga
CEO: Mr. Adrian Tanase, CFA
Address: Bulevardul Carol I nr 34 - 36, etaj 14, sector
2, cod postal 020922, Bucuresti, Romania
Contact Name: Remus Danila,
Email: [email protected]
Website: www.bvb.ro
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Radu Haga
President of the Board
The capital market, in general, and the Bucharest Stock Exchange (BVB), in particular, play a pivotal role when it comes to generating the so much needed wealth every economy and country wants to have. We, at BVB, are constantly pursuing this effort to develop one of the greatest financing platforms for the Romanian economy.
We started 2018 with enthusiasm and we had all the right reasons to feel so. A new company came to the market mid-February. It was the first company from the Republic of Moldova that went public on our stock exchange. The IPO of Purcari Wineries, a leading CEE wine producer, was well received, with retail investors oversubscribing more than four times, despite heavy turbulences on global markets.
While the number of listings of new shares slowed down in 2018 as compared to the prior year, the segment for corporate bonds kept a very good dynamic. Significant corporate bond issues took place last year, for example: Globalworth EUR 550 million, Banca Transilvania EUR 285 million, International Investment Bank RON 300 million and EUR 80 million.
The AeRO market saw its activity revamped by its issuers in the corporate bonds sector, as the listed
The year 2020 can be even better for the Romanian stock exchange, if the state resumes the listing process, frozen over the last 5 years, to sell minority stakes in state-owned companies such as Hidroelectrica or CEC Bank. For enhanced relevance, the weight of the Romanian companies listed on the stock exchange as a weight in GDP should double and reach 20% in the next 10 years, and this can be achieved through the involvement and support of the state authorities. The listing of Hidroelectrica is almost decisive for Romania to receive the Emerging Market status also from the global index provider MSCI.
Future Developments