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EVOLUTION OF CAPITAL MARKET IN 2023

May 6, 2024

The local capital market recorded positive developments in 2023, with the total value traded on the regulated market of the Bucharest Stock Exchange (BVB) and on the Multilateral Trading System (MTF) reaching RON 38.04 billion, an increase of over 58% compared to the previous year.    The number of trades on BVB - on the regulated market and MTF - amounted to almost 1.98 million in 2023 and increased by more than 18% compared to 2022. The market capitalisation on the regulated market reached RON 294.2 billion at the end of 2023, an increase of about 49.2% compared to the end of 2022.   Romanian stock market indices recorded positive developments at the end of December 2023 compared to the end of 2022. The BET benchmark index (which includes the performance of the most traded companies on the BVB regulated market) was up by 31.79% on 29 December 2023 compared to the end of 2022. The value of transactions in government securities on 29 December 2023 decreased compared to the same period of 2022, recording a level of approximately RON 3.2 billion. Shares remain the dominant financial asset class, accounting for almost 65% of the total value traded on BVB by 29 December 2023.   At the end of 2023, a total of 28 intermediaries were operating on the regulated market administered by BVB, including 18 Financial Investment Services Companies (FISC), 3 local credit institutions and 7 entities authorised in other EU Member States. In addition, 22 intermediaries were active in the MTF, of which 17 Financial Investment Services Companies (FISC), 3 local credit institutions and 2 entities authorised in other EU Member States. During the reference period, the most active intermediaries on BVB (regulated market and MTF) were local credit institutions, the value of which intermediated approximately RON 37.3 billion. Local intermediaries (FISCs and credit institutions) accounted for about 93% of the total value brokered. Of the intermediaries authorised in other EU Member States that traded on the spot markets, the most active were investment firms, with a market share of 4.46%.   At the end of 2023, FISCs had in custody a cumulative value of assets of RON 30.79 billion, representing both client cash and financial securities held by clients. The cumulative number of active client accounts of the FISCs at the end of 2023 was 84,687.   Total assets of collective investment undertakings (CIUs) in Romania at the end of the fourth quarter of 2023 amounted to approximately RON 36.4 billion, down by 1% compared to the previous quarter and also down by approximately 14% compared to the level recorded at the end of 2022. At the end of December 2023, there were 17 managers operating in Romania, of which 6 authorised exclusively as investment management companies (IMCs), 2 authorised exclusively as alternative investment fund managers (AIFMs), and 9 with double authorisation. In addition, at the end of 2023, 92 undertakings for collective investment in transferable securities (UCITS), 36 alternative investment funds (AIFs) including the 6 investment companies (ICs) and Fondul Proprietatea were authorised. Safeguarding services for the 128 CIUs were provided by 4 depositaries.   An analysis by category of collective investment undertaking shows that in 2023, compared to the previous year, there were decreases in total assets for FP (-79.82%) and increases in total assets for FICs (27.14%), UCITS (16.74%) and AIFs (10.54%).   As of 29 December 2023, the top three IMCs managed approximately 71.18% of UCITS assets and 64% of AIF assets. On the same date, net assets relating to the six ICs totalled approximately RON 13.44 billion, up 25% from the end of 2022, when a level of RON 10.69 billion was recorded. (Source:https://www.asfromania.ro/

The text of this article has been partially taken from the publication:
http://actmedia.eu/financial-and-banking/evolution-of-capital-market-in-2023/108022
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