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Study: The Romanian capital market continues its expansion at a lower pace than in 2021

July 21, 2022

The capital market in Romania continues its expansion at a lower pace than in 2021,due to the economic and geopolitical uncertainties, according to the report ‘ Multiples of valuation of companies listed on the Bucharest stock Exchange’ made by PwC Romania. According to the quoted source, the capitalization of the companies listed on the Bucharest Stock Exchange (BVB) got to 229 billion lei at the end of the first quarter of 2022, with 20% over the level reached in the similar period of last year, but under the level on 31st December 2021. In 2021, the local market of capital established a record as regards capitalisation, this growing with over 50% and getting to 249 billion lei (50 billion euro) at the end of the year, in a more favourable context against the previous year, with a reduction of the worries connected to the pandemics /restrictions and more international visibility, as a result of the inclusion of several Romanian companies in indexes FTSE.‘The analysis made over the last 10.3 years there is an improvement of the performance of BVB although it is still dependent on the foreign capital. The conclusion of the study shows the fact that investors on the capital market got on average up to 14% more than investors in governmental bonds when we speak about BET-TR with 5% over if we speak about BET, which could represent a supplementary argument for investments on the BVB’ said Raluca Alexandra Capatina –Stoica, manager PwC Romania.According to the study, the cumulated value of the three public offers on the regulated market of 2021 has surpassed 900 million lei. The BET indicator recorded growth by 14% from 11,190 points on 31st March 2021 to 12,712 points on 31st March 2022, as a result of the growth of the number of investors and the increased international visibility of the local market of capital with the inclusion of the Romanian companies listed in FTSE indicators.The share of BVB capitalisation in GDP has reached 20.9% at the end of 2021. Romania is behind other countries in the region such as the Czech Republic, Greece, Croatia and Bulgaria but over Slovenia, Hungary, Cyprus and Slovenia. With a significantly higher number of companies listed in Romania against other countries in the region, the average capitalization of BVB was 132 million euro on 31st December 2021, lower that that recorded on other regional stock exchanges, such as the Czech Republic, Hungary, Greece, Slovenia, Croatia and Bulgaria.  

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