Increases of over 5% were recorded on the segment of shares listed on the Bucharest Stock Exchange in the first half of 2020, in terms of both the daily average liquidity and the total trading value.
“Stock markets have benefited from the prompt and unprecedented liquidity injections announced by central banks due to the exceptional situation created by the coronavirus pandemic. The international consensus at the government level to support economic activity has been another fulcrum for stock markets, and the results can already be seen in our market as well. The rapid U-turn of capital markets shows that investors remain cautious-optimistic about the prospects for revitalizing the economy, both globally and locally,” stated Radu Hanga, President of the Bucharest Stock Exchange.
The first half of the year was a difficult and volatile one for the capital markets, and international stock markets felt strongly the effects generated by the coronavirus pandemic. The voluntary and temporary closures of some economic sectors as a measure to protect public health have prompted governments and central banks to announce stimulus packages and measures to help revive the economy, following significant adjustments in international stock markets in March 2020.
Under these circumstances, all but two main indices of the EU stock exchanges went into the red in the first half of the year. Denmark and Latvia saw the only growth rates as they spiked up by 9.4%, and 1.6% respectively, according to Reuters data. At the other end of the spectrum, market lows of around 30% were posted by the main indices in Greece (-30.3%), Cyprus (-30.07%), Austria (-29.5%) and Luxembourg (-29.49%). By comparison, Romania’s BET index, mirroring the evolution of the 17 most traded companies listed on the Bucharest Stock Exchange (BVB), amounted to 8,659 points (-13.21%), placing Romania nineth in the EU regarding the evolution of the main indices at the end of the first semester.
The total trading value for equities on the main regulated market of the Bucharest Stock Exchange accounted for RON5.58 billion (EUR 1.16 billion) at the end of the first six months of 2020, up 5.07% from the same period of 2019. The average daily trading value saw a similar growth rate, and amounted to RON45.7 million (EUR 9.5 million), up 5.08% compared to the first six months of 2019.