July’s Bucharest Stock Exchange total trading value up 186 pct YoY

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The total value of Bucharest Stock Exchange (BVB) trades this July was up 22 percent from the previous month and 186 percent higher YoY, having hit 1.3 billion lei (280 million euro), informs a report on the BVB website.

The segment of fixed income instruments (bonds) recorded a strong advance as a result of the bond issue offerings carried out by UniCredit Bank (610 million lei, or 134 million euro). The bond segment accounted for almost half of the total value of trades performed on the local capital market.

The dividend season was followed by the bond season and other bond issues will be next, which shows that investors increasingly trust the Romanian economy and capital market. A developed capital market cannot exist without a market for lending instruments like bonds. If investors buy bonds, this means they understand and accept the local risks in their entirety, as reflected in bond interests, said BVB CEO Ludwik Sobolewski.

In his turn, BVB president Lucian Anghel remarked that the recent bond deals are “a positive message Romania sends to investors, specifically that the Bucharest market has the capability and necessary tools to absorb significant transactions, whether they involve issues or sales of stock or bonds.”

The main market index, the BET, recorded an advance of 16.8 pct in the first seven months of this year, while the BET-TR index that also includes the dividends paid by the BET companies increased by 24.7 pct. The average daily trading went past 9.25 million euro at the end of the period January – July 2017, up 34 percent from the same period last year. At the end of July the market value of BVB-listed Romanian companies was in excess of 20.2 billion euro.

“The Bucharest Stock Exchange is second in the Central and Eastern European capital market where initial public offerings (IPO) have been successfully concluded in the second quarter of this year, for a cumulative amount of over 208 million euro, according to BVB. The Warsaw Stock Exchange is on the first position with six IPOs with an aggregate amount of 542 million euro, followed by the Bucharest Stock Exchange with two offerings – Digi Communications and AAGES, as per IPO Watch Europe Q2 2017, a survey conducted by PricewaterhouseCoopers (PwC),” the BVB report reads.