The BET index overshot the 9,900-point mark it had not reached since October 2007, which means the Bucharest Stock Exchange is about to end its best year since the crisis, helped by the base effect after Ordinance 114 on taxation changes, which caused the stock market indices to plummet.
“The beginning of this year was a good time to buy and those who did are happy now. It can be said that this is a good time to sell considering the increases lately, but I think the trend will remain positive in the long run,” says Antonio Oroian, Goldring broker.
With a 4% rise in the main index BET in November, the Bucharest Stock Exchange made its way to the high of the past 12 years undisturbed despite the change of government in Romania and the worsening economic conditions as shown by a deficit of 4% of GDP.
“Although the macroeconomic data are probably the worst in the last few years, the main indices of the stock market continued to increase,” says Gabriel Aldea, head of Tradeville brokers.
The BET index is mostly made up of energy companies and banks, which will benefit from the fiscal relaxation soon, following the promises of the Prime Minister Orban to drop the taxes introduced by Ordinance 114.
(English version by Loredana Fratila-Cristescu)