Bucharest Exchange generates 3.8% combined capital and dividend yield in Q1

The BET-TR index at the Bucharest Exchange (BVB), which reflects both the prices of the major companies listed on the Romanian equity market but also their dividends, increased by 3.8% year-to-date (YTD) at the end of March, according to the monthly report published by BVB on April 24.

But this development took place against the backdrop of decreasing liquidity, the report points out.

The number of investors increased to an all-time high, somehow artificially driven by individual investors’ interest in government bonds (as opposed to broader investments in a diversified portfolio of more complex investors) and may further grow with the listing of Hidroelectrica.

In the first quarter at the BVB, seven listings took place for a total of EUR 428 mln: there were 6 bond issues that totalled EUR 427 mln and one equity issue of almost EUR 1 mln.

The number of investors in the Romanian capital market reached 133,000, a level that represents an all-time high.

“Our projects, from the new brand identity, which is fresher and friendlier, to those on increasing the visibility and attractiveness of the capital market as a platform for financing local companies, are elements that add value and have received the appreciation of investors,” said Radu Hanga, BVB President.

“We believe that it is feasible to reach 200,000 investors in the short term if the pace that we have seen in recent years is maintained, combined with the implementation of the FIDELIS program, the listing of Hidroelectrica, and the simplification of fiscal procedures that is in force since January 1st this year,” said Adrian Tanase, BVB CEO.

(Photo source: Inquam Photos/George Calin)