“The declines in November occurred primarily following the release of financial results by companies. Although most companies reported results up from previous quarters, for many companies, expectations were already priced in and many investors saw as appropriate to cash in on their profits, “ says Antonio Oroian, broker at Goldring.
“Of course, at the end of the month, the first information about the new South African strain emerged and the local stock market immediately correlated with the developments abroad, recording the biggest drop in a single session since June 2020 on November 26.”
Since the beginning of the year, the BET has gained about 26%. By comparison, the major US indices – the Dow Jones, Nasdaq and S&P 500 – are up 14%, 19% and 22%. The year also brought 20 share listings on both the main market of the Bucharest Stock Exchange and the AeRO market. The most recent example of this is Aquila, the leader of the local consumer goods distribution market, which debuted on the stock market on November 29, with a valuation of RON1.1 billion.
“For December I still recommend caution, I expect high volatility, and a strong influence from external markets. I believe that developments will largely depend on the trend of the spread of this new virus variant and, above all, on the eventual success of the manufacturing companies in designing a serum against the new strain.”
On average, the month of December brought a BET increased of between 2% and 3%. Last year, the index gained 5.94% in December, according to ZF calculations based on Bucharest Stock Exchange data.
“It also remains to be seen how inflation will develop in the coming period, given that the Fed seems to have changed its mind about the idea of transitory inflation and is considering withdrawing the economic stimulus earlier than initially forecast.”
(English version by Loredana Fratila-Cristescu)