The BET index tracking the ten most important stocks on the market rose 0.9% in February, while the composite index, BET-C, dropped 0.9%. The US stock market rose 4.3% and the UK stock market went up 4.6%, while Germany’s and France’s gained 4.1% and 5.8%.
The Bucharest Stock Exchange indices have seen a decline of between 1% and 3% since the beginning of the year.
Brokers say that one of the main reasons why investors are reluctant to spend is the country’s political situation, which stopped precisely those measures that should have helped the economy grow.
“It is a rather slow start of the year as far as stock market indices are concerned, maybe because of the investor sentiment, which is rather gloomy due to the political frictions and conflicts in the government,” says Marcel Murgoci, head of operations with broker Estinvest.
“Because some ministers resigned and were replaced by interim ministers, no steps to help the economy at this time have been taken, which caused uncertainty among investors.”
Many of the companies included in the BET index posted better than expected results for the full 2013 and for the fourth quarter of last year. These companies include Nuclearelectrica (SNN.RO), Transelectrica (TEL.RO), Transgaz (TGN.RO), Banca Transilvania (TLV.RO) and the Bucharest Stock Exchange (BVB.RO). Only BRD was not a nice surprise for investors, after booking additional provisions for non-performing loans at the end of the year.
(English version by Loredana Fratila-Cristescu)