Out of the most liquid shares on the market, those that stood out include drug producer Antibiotice Iasi (ATB.RO), which generated 81.9% yield including dividends between December 31, 2012 and December 22, 2013. This was because the good performance of the pharmaceutical market, the increase in the company’s exports and the purchase of some of its shares by regional investment fund SIF Oltenia (SIF5.RO) lately, its main minority shareholder.
Drug producer Biofarm Bucuresti (BIO.RO) rose 44% this year, generating 50% yield, including dividends, because of its better results and the changes in its shareholder structure, after SIF Muntenia (SIF4.RO) bought into it, which could lead to a tender offer.
The most traded and popular stock on the market, Fondul Proprietatea (FP.RO) had an outstanding 2013, gaining more than 51% since the beginning of the year. Including the dividends, the fund’s yield stands at 58.7%. The fund owes its performance to the pressure put by the main shareholder, US hedging fund Elliott, on manager Franklin Templeton to reduce Fondul Proprietatea’s discount to its asset book value, which is now 33% from almost 50% in early 2013.
The fund also repurchased its shares paying much more than the market price, which boosted book value per share without the value of the stakes held actually increasing.
Bucharest Stock Exchange (BVB.RO) shares generated 55% yield including dividends, after a change of management, with Polish executive Ludwik Sobolewski becoming its general manager after having run the Warsaw Bourse. Another reason for the performance of the Bucharest Stock Exchange shares was the public offerings conducted by state-owned companies Romgaz (SNG.RO), Nuclearelectrica (SNN.RO) and Transgaz (TGN.RO).
SIF Oltenia left the other regional investment funds behind, rising 37%. Including the dividends, its yield was 46.5%, following talks about raising the stake cap in such funds from 5% to almost 33%, the sale of Biofarm and the investors’ perception of this SIF as the most cost-effective of all, as well as the fact that it made significant profit without resorting to asset sales.
Banca Transilvania (TLV.RO) was the again the most profitable bank on the stock market in 2013, for which reason investors remained interested in it and it gained 43% throughout the year. It posted 240 million lei (EUR53 million) profit in January-September, 9.5% lower than in the year-ago period.
Banca Carpatica (BCC.RO), which returned to profit last year, gained almost 70% this year.
Less liquid and visible stocks like real estate developer Impact Developer & Contractor (IMP.RO) surged 375% this year, the highest rise on the stock market, after the takeover by businessman Gheorghe Iaciu.
Ceramic block manufacturer Cemacon (CEON.RO) went up 130.4% after private equity fund KJK Fund and Andrei & Andrei Consultanta firm of the founder of insolvency specialist Casa de Insolventa Transilvania, Andrei Cionca bought into it and persuaded the main creditor, BCR, to restructure EUR30 million debt the company was unable to pay on time.
Other stocks with over 100% yields are plastic manufacturer Prodplast Bucuresti (PPL.RO), and car parts maker Uamt Oradea (UAM.RO), which rely on orders from Dacia to keep going.
The largest local company, OMV Petrom (SNP.RO) generated 14% yield including dividends, below the market average, due to investor expectations of a sale by Fondul Proprietatea, which still owns 19% in the company.
BRD, the largest bank on the stock market, saw its shares go up 11.5% this year, while profitability continued to suffer because of bad debt provisions.
Traded volume on the stock market increased by 52% this year as a result of the public offerings conducted and of Fondul Proprietatea’s share repurchase, reaching EUR2.5 billion, the highest level since 2007.
The growth of the Bucharest Stock Exchange overlapped with the growth of major international stock markets, with the US and German markets reaching all time highs in 2013. (EUR1=RON4.4754)
(English version by Loredana Fratila-Cristescu)