On the other hand, more than half of the listed shares dropped in the first half of the year, reaching a decline of 50% in the case of Impact.
The Bucharest Stock Exchange did not perform that well in the first half if looking at its main indicators: the BET index, which tracks the top ten local companies rose 4.4%, while BET-C, which tracks all the listed companies except for the regional investment funds (SIFs) fell 2.8%. Only the SIF and Fondul Proprietatea (FP.RO) index, BET-FI, did somewhat better, rising 5.1%.
The index increases after the first half are small, compared with the first two months of the year when they had gone up by over 20%. The index trend does not take into account the dividends paid by the listed companies; the largest companies paid high dividends compared with their share price, which caused steep corrections to the respective shares once the dividend date passed.
Factoring in the dividends, the BET index increase should stand at 10% compared with the beginning of the year and the BET-FI index’s should be of 20%, according to ZF’s calculations.
The stock market therefore generated hefty profits in the first half, much higher than the bank deposits, which most Romanians use to keep their savings. Romania’s largest company, Petrom, generated 40% yield in the first half, given its highest profit ever posted last year; it paid dividends of more than 10% of its stock price.
An investment of 10,000 lei (EUR2,200) in Petrom stocks would have generated RON4,000 in gross profit (from both price increase and dividends). The same amount deposited in a bank would have generated RON350 in interest in the first six months, considering banks paid no more than 7% per annum for deposits in January.
SIF Muntenia, too, generated significant yields. The company has been the stage of a battle between a group of shareholders and the current management over control of EUR280 million assets over the last few months.
All the five regional investment funds generated profit this year after the raise of the stake cap from 1% to 5% allowed large investors to buy more shares. On top of that, they caved in to shareholder pressure and paid their highest dividends ever in 2012.
Fondul Proprietatea’s yield was almost 16% in the first six months, that is more than four times the bank interest. The fund’s shares rose significantly in the first two months of the year, mainly, and have suffered significant corrections in the last two weeks, after the announcement of Hidroelectrica’s insolvency. Fondul Proprietatea owns 20% in that company, and therefore the insolvency wiped out EUR700 million from the value of its asset.
Banca Transilvania (TLV.RO) was the best investment among banking stocks in the first half, with 15% yield. On the other hand, BRD (BRD.RO) lost more than 15%, including the dividend paid, as a result of the profit decline and higher sales of stakes conducted by SIFs.
The most liquid stocks with the most serious declines include national grid company Transelectrica Bucuresti (TEL.RO), which lost 23.7%. The government sold 15% in the company in March. After that offering, Transelectrica continued to decline and therefore those that bought at the time lost more than 11%.
Energy trader Electromagnetica (ELMA) and chemical plant Oltchim (OLT.RO) have declined by more than 40% since the beginning of the year and real estate developer Impact (IMP.RO) lost more than 48%, and also witnessed the steepest decline in June, over 40%.
Company (symbol) Share price on June 30, 2012 (lei) Share price on
Dec 30, 2011 (lei) Gross dividend (lei) Share trend Dividend yield Total yield Transactions (millions of lei)
Carbochim Cluj-Napoca (CBC.RO) 14 5.8 0.55 141.4% 9.5% 150.9% 1.55
Artego Targu Jiu (ARTE.RO) 4.6 2.1 0.2381 119.0% 11.3% 130.4% 4.93
Azomures Tg. Mures (AZO.RO)* 2.08 1.35 0 54.1% 0.0% 64.4% 293.91
Mefin Sinaia (MEF.RO) 1.65 1.1 0 50.0% 0.0% 50.0% 0.04
Farmaceutica Remedia Deva (RMAH.RO) 0.2669 0.199 0.02 34.1% 10.1% 44.2% 0.36
OMV Petrom (SNP.RO) 0.375 0.29 0.031 29.3% 10.7% 40.0% 175.81
SIF Muntenia (SIF4.RO) 0.715 0.571 0.081 25.2% 14.2% 39.4% 175.12
SIF Moldova (SIF2.RO) 1.26 1.08 0.22 16.7% 20.4% 37.0% 238.40
Zimtub Zimnicea (ZIM.RO) 1.88 1.51 0 24.5% 0.0% 24.5% 0.03
Prefab Bucuresti (PREH.RO) 1.3 1.05 0 23.8% 0.0% 23.8% 0.54
MJ Maillis Romania (MJM.RO) 0.26 0.21 0 23.8% 0.0% 23.8% 0.00
SIF Oltenia (SIF5.RO) 1.12 1.057 0.13 6.0% 12.3% 18.3% 291.31
Fondul Proprietatea (FP.RO) 0.4565 0.427 0.0385 6.9% 9.0% 15.9% 1,661.96
TMK Artrom Slatina (ART.RO) 1.55 1.346 0 15.2% 0.0% 15.2% 0.22
Banca Transilvania (TLV.RO)** 0.948 0.884 0 7.2% 0.0% 15.0% 96.71
Aerostar Bacau (ARS.RO) 1.029 0.99 0.072 3.9% 7.3% 11.2% 0.29
Erste Bank (EBS.RO) 64.5 58 0 11.2% 0.0% 11.2% 104.37
SIF Banat-Crisana (SIF1.RO) 0.9 0.903 0.1 -0.3% 11.1% 10.7% 178.55
Electroaparataj Bucuresti (ELJ.RO) 0.1181 0.107 0 10.4% 0.0% 10.4% 0.03
Armatura Cluj-Napoca (ARM.RO) 0.11 0.1 0 10.0% 0.0% 10.0% 0.10
SIF Transilvania (SIF3.RO) 0.4477 0.567 0.1712 -21.0% 30.2% 9.2% 338.06
Alumil Rom Industry Bucuresti (ALU.RO) 1.11 1.03 0 7.8% 0.0% 7.8% 0.43
Vae Apcarom Buzau (APC.RO) 0.6 0.65 0.09 -7.7% 13.8% 6.2% 0.41
Mecanica Ceahlau (MECF.RO) 0.122 0.115 0 6.1% 0.0% 6.1% 1.40
OTP Green Energy (GRE.RO) 199.15 187.8 0 6.0% 0.0% 6.0% 0.23
OTP WiseRo (WRO.RO) 200 189 0 5.8% 0.0% 5.8% 0.28
Romcarbon Buzau (ROCE.RO) 0.1649 0.1669 0.0099 -1.2% 5.9% 4.7% 0.35
Petrolexportimport Bucuresti (PEI.RO) 18.6 17.9 0 3.9% 0.0% 3.9% 0.05
Casa de Bucovina Club de Munte (BCM.RO) 0.0651 0.072 0.009 -9.6% 12.5% 2.9% 0.15
Compa Sibiu (CMP.RO) 0.4 0.389 0 2.8% 0.0% 2.8% 4.98
Bermas Suceava (BRM.RO) 0.8 0.84 0.06 -4.8% 7.1% 2.4% 0.64
Titan Bucuresti (MPN.RO) 0.24 0.2499 0.012 -4.0% 4.8% 0.8% 0.34
Transgaz Medias (TGN.RO) 192 223.35 29.76 -14.0% 13.3% -0.7% 40.98
Ropharma Brasov (RPH.RO) 0.68 0.69 0 -1.4% 0.0% -1.4% 9.59
Comelf Bistrita (CMF.RO) 1.75 1.8 0.0189 -2.8% 1.1% -1.7% 0.07
Rompetrol Well Services (PTR.RO) 0.242 0.281 0.029 -13.9% 10.3% -3.6% 0.96
Biofarm Bucuresti (BIO.RO) 0.169 0.1929 0.01 -12.4% 5.2% -7.2% 5.87
Uamt Oradea (UAM.RO) 0.4255 0.46 0 -7.5% 0.0% -7.5% 0.15
Broker Cluj (BRK.RO) 0.0979 0.1069 0 -8.4% 0.0% -8.4% 6.72
Energopetrol Campina (ENP.RO) 0.95 1.04 0 -8.7% 0.0% -8.7% 0.04
Antibiotice Iasi (ATB.RO) 0.34 0.39 0.0152 -12.8% 3.9% -8.9% 7.70
Siretul Pascani (SRT.RO) 0.0128 0.0141 0 -9.2% 0.0% -9.2% 0.18
iFond Gold (IFG.RO) 100.9 112.1 0 -10.0% 0.0% -10.0% 0.08
STK Emergent (STK.RO) 34 38 0 -10.5% 0.0% -10.5% 1.90
Zentiva Bucuresti (SCD.RO) 0.711 0.887 0.0812 -19.8% 9.2% -10.7% 2.52
Bursa de Valori Bucuresti (BVB.RO) 23.38 28.9 2.1417 -19.1% 7.4% -11.7% 46.35
Electrocontact Botosani (ECT.RO) 0.029 0.0329 0 -11.9% 0.0% -11.9% 0.01
THR Marea Neagra (EFO.RO) 0.063 0.072 0 -12.5% 0.0% -12.5% 0.68
Boromir Prod Buzau (SPCU.RO) 0.148 0.1699 0 -12.9% 0.0% -12.9% 1.04
Prodplast Bucuresti (PPL.RO) 0.832 0.96 0 -13.3% 0.0% -13.3% 0.17
Turism Felix Baile Felix (TUFE.RO) 0.137 0.16 0 -14.4% 0.0% -14.4% 0.20
iFond Financial Romania (IFR.RO) 122 143.7 0 -15.1% 0.0% -15.1% 0.67
BRD Societe Generale (BRD.RO) 8.87 10.71 0.1669 -17.2% 1.6% -15.6% 384.70
Retrasib Sibiu (RTRA.RO) 0.16 0.19 0 -15.8% 0.0% -15.8% 0.92
Comcm Constanta (CMCM.RO) 0.1301 0.16 0 -18.7% 0.0% -18.7% 0.02
Teraplast Bistrita (TRP.RO) 0.16 0.2003 0 -20.1% 0.0% -20.1% 1.56
Vrancart Adjud (VNC.RO) 0.053 0.067 0 -20.9% 0.0% -20.9% 0.23
Altur Slatina (ALT.RO) 0.0268 0.034 0 -21.2% 0.0% -21.2% 0.30
Mechel Targoviste (COS.RO) 0.5525 0.701 0 -21.2% 0.0% -21.2% 0.01
Alro Slatina (ALR.RO) 2.2 3.25 0.3165 -32.3% 9.7% -22.6% 1.22
Transilvania Constructii Cluj (COTR.RO) 20 26 0 -23.1% 0.0% -23.1% 0.11
Electroages Curtea de Arges (ELGS.RO)** 0.2475 0.33 0 -25.0% 0.0% -23.6% 2.35
Transelectrica Bucuresti (TEL.RO) 12.18 17.4 1.1 -30.0% 6.3% -23.7% 56.58
Oil Terminal Constanta (OIL.RO) 0.129 0.18 0.0034 -28.3% 1.9% -26.4% 1.68
Rompetrol Rafinare Constanta (RRC.RO) 0.028 0.0383 0 -26.9% 0.0% -26.9% 0.38
Socep Constanta (SOCP.RO) 0.2389 0.3445 0 -30.7% 0.0% -30.7% 12.55
Banca Carpatica Sibiu (BCC.RO) 0.039 0.0567 0 -31.2% 0.0% -31.2% 2.87
Santierul Naval Orsova (SNO.RO) 1.9 2.82 0 -32.6% 0.0% -32.6% 0.11
Sinteza Oradea (STZ.RO) 0.35 0.52 0 -32.7% 0.0% -32.7% 0.76
Dafora Medias (DAFR.RO) 0.0408 0.061 0 -33.1% 0.0% -33.1% 4.29
Turbomecanica Bucuresti (TBM.RO) 0.0293 0.0466 0 -37.1% 0.0% -37.1% 0.81
Condmag Brasov (COMI.RO) 0.1 0.1626 0 -38.5% 0.0% -38.5% 4.59
VES Sighisoara (VESY.RO) 0.033 0.0538 0 -38.7% 0.0% -38.7% 0.04
Electromagnetica Bucuresti (ELMA.RO) 0.1549 0.272 0.004 -43.1% 1.5% -41.6% 13.02
Oltchim Rm. Valcea (OLT.RO) 0.63 1.097 0 -42.6% 0.0% -42.6% 15.18
Amonil Slobozia (AMO.RO) 0.0076 0.0136 0 -44.1% 0.0% -44.1% 1.01
Impact Developer & Contractor (IMP.RO) 0.093 0.182 0 -48.9% 0.0% -48.9% 1.84
Electroputere Craiova (EPT.RO) 0.022 0.044 0 -50.0% 0.0% -50.0% 0.05
Concefa Sibiu (COFI.RO) 0.0102 0.0237 0 -57.0% 0.0% -57.0% 5.93
Cemacon Zalau (CEON.RO) 0.022 0.0515 0 -57.3% 0.0% -57.3% 0.32
*Total yield for Azomures was calculated based on the price in the tender offer, RON2.22/share
** Banca Transilvania and Electroarges’ capital increases were taken into account, as well
Source: KTD Invest, BVB, ZF calculations
(English version by Loredana Fratila-Cristescu)