The BET-TR index, which also includes dividends, grew 5.1% in January compared with January 2020. Moreover, BET-TR closed the last trading session in January of this year at a record level of 17,350 points, setting a new all-time high after previously breaking another high of 16,500 points, reached at the end of December last year.
“We are pleased with the recent decision of the Romanian Government to pave the way for the listing of minority stakes in companies in which the Romanian state is a shareholder. Resuming listings does not mean privatization, but transparency and access to finance, while the state can still retain the majority control in the companies from its portfolio. It is in the interest of the Romanian state to have as many companies listed on the stock exchange as possible because the capital market ensures a climate of performance and transparency, thus contributing to the development of the national economy,” said Radu Hanga, President of the Bucharest Stock Exchange.
Investment activity on the Bucharest Stock Exchange grew 6.1% on the year in January. Thus, the total trading value registered at the level of all types of financial instruments reached RON1.08 billion (EUR221 million). Of the total, transactions on the equity segment represented RON783 million (EUR160 million), while on the fixed income instruments segment transactions totaled RON235 million (EUR48 million). The rest of the transactions were performed on the segment of structured products, fund units, ETFs.
The average daily trading value performed in January with all types of financial instruments was RON53.88 million (EUR11.07 million), 6% higher compared with January 2020.
“The advantages companies can reap from going public are manifold. Through the rules imposed by corporate governance, the capital market ensures increased transparency in the way the listed companies carry out their activity, efficient management that is accountable to the shareholders, and also a correct evaluation of the companies according to the demand-supply dynamic. For the state budget, the presence of state-owned companies on the stock exchange can create opportunities for additional cash flows to the budget. At the same time, it reduces the pressure on the budget to ensure possible financing because the capital market offers the possibility to companies to finance themselves by issuing shares or bonds that cover the much-needed investments,” said Adrian Tanase, CEO of the Bucharest Stock Exchange.