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March 25, 2023

Foreign investors maintain interest for Romania’s capital market

The total price of shares they bought last year on the stock exchange was EUR 111 M more than what they sold, CNVM informs.

Foreigners bought last year more shares on the Romanian stock exchange than they sold, with the difference amounting to RON 492 M (EUR 111 M), with the biggest net acquisitions being made by the investors registered in the United Kingdom, while those from Luxembourg were the most active sellers. The net acquisitions made by foreign investors exceed by almost 35 pc the EUR 365 M (nearly EUR 86 M) registered in 2011, according to statistics made public by the National Securities Commission (CNVM), Mediafax reports. In total, foreign investors purchased last year equity worth RON 2.031 bln (almost EUR 455 M) and sold up to the total sum of RON 1.539 bln (EUR 344 M). Acquisitions exceed by 11 pc the sum reported in 2011, which topped RON 1.827 bln (EUR 430.7 M), while sales were 5.3 pc higher than in 2011, when they cumulated RON 1.462 bln (EUR 344.8 M).

Purchases operated by foreign investors account for approximately 20.7 pc of the cumulated value of all transactions conducted last year on the Bucharest bourse, including the Rasdaq market, which amounted to RON 9.83 bln (EUR 2.211 bln). Meanwhile, sales account for nearly 15.7 pc of total transfers on BVB.Last year too, British investors were the most active buyers and, unlike year 2011, the positions they terminated were smaller than the sums they paid on new acquisitions. Purchases thus exceeded sales by RON 594.6 M (EUR 133.4 M). In 2011, these investors withdrew from the market RON 15 M (EUR 3.6 M). If in 2011 the investors registered in Luxembourg were net buyers, last year they were more active in terms of sales and climbed on the first place in the statistics of sold participations. Luxembourg investors withdrew from the market RON 284.8 M (EUR 64 M) last year, unlike 2011, when acquisitions outpaced sales by RON 32.2 M (EUR 7.6 M).Acquisitions were double compared to 2011, and reached RON 164 M (EUR 38.7 M), while the value of sold equity was almost five times higher than in 2011, at RON 131.8 M (EUR 31.1 M).

The interest of foreign investors for the Romanian stock exchange visibly increased with the listing of Fondul Proprietatea, on 25 January 2011. Foreign institutional investors were the biggest buyers of Fondul Proprietatea stock, collecting over 34 pc of shares. Last year, foreign institutional investors bought over 10 pc of Fondul Proprietatea. Since the listing of FP, among the major buyers were the American hedging fund Elliott Associates and the investment administration company City of London, which respectively purchased nearly 18 pc and 9.43 pc of FP.

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