ECONOMY FINANCE&BANKING

BVB president: Chances for BET index to top Jan 2008 peak, need to stay grounded

Chances are high for the main index of the Romanian capital market to exceed this year the level of January 2008, but one should stay down to earth and not get carried away, president of the Bucharest Stock Exchange (BVB) Lucian Anghel told AGERPRES on Thursday.

“Judging by the way the year started, there are chances for this to happen. On the other hand, I think we shouldn’t get euphoric. It’s very important that we stay down to earth and don’t swing from one extreme to another,” said Anghel.

He added that the main index of the Romanian capital market (BET) has surpassed the expectations of the most optimistic analysts, who would have seen it rising that high only towards the end of the year.

“The index has already exceeded the expectations of the most optimistic analysts who were anticipating it to reach this level only towards the end of the year. If economy grows further, financial results stay just as good as last year and dividends are substantial, chances are that increasingly more Romanians discover this investment alternative going by the principle that one should not put all the eggs in the same basket, meaning to not rely only on bank deposits, with the due advice that we must be careful to make the distinction between a deposit and an investment with its implicit risks. Considering the budget conditions I expect the budget’s need for higher dividends from state-run companies will be very substantial. I mean that I expect the profit percentage the state will charge as dividend from state-owned companies to stay very high not just this year, but also in the years to come, which means a considerable addition and which should lead to increased company value in the longer term,” said the Stock Exchange official.

The BET main index which reflects the evolution of the most active ten stocks on the regulated market reached 8,080 points Thursday morning, 14 percent higher from the beginning of the year and also the highest level since the crisis onset. According to BVB information made available at the request of AGERPRES, the BET peaked in 2008 on January 4 at 9,735.67 points.

The BET all-time high was on July 24, 2007 at 10,813.59 points.

As for the BET-TR index which reflects the evolution of the 10 most liquid issuers listed on the Stock Exchange that make up the BET index and the dividends distributed to company shareholders, it attained on Thursday at noon an all-time high of 9,957 points.

The BET-Plus index of the top liquid 37 issuers advanced 0.29 pct at 13:25 hrs, while the BET-FI index of the of the financial investment companies had inched up 0.08 pct.

The BET-NG index of the energy and public utility companies saw an appreciation of 0.54 pct, the extended blue-chip index BET-XT of the top-liquid 25 issuers rose 0.34 pct and the BET-BK return benchmark index for stock investment funds was up 0.24 pct.

At noon, four companies in the BET index were on a downward trend, specifically Nucleareletrica (-0.93 pct), Fondul Proprietatea (-0.55 pct), Romgaz (-0.17 pct) and Electrica (-0.14 pct). OMV Petrom and Transelectrica both were up by more than one percentage point, specifically 1.97 pct and 1.16 pct.

Comelf was the issuer to experience the steepest depreciation on the regulated market overall, -4.22 pct, followed by SSIF BRK Financial Group with -3.02 pct and Altur with -2.23 pct. Conversely, Electrocontact scored a 5.57 pct appreciation, Transylvania Constructii was up 3.83 pct and Teraplast advanced 3.01 pct.

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