Bucharest Stock Exchange, less than 2% from its all-time high set in 2007

The BET index, which follows the evolution of the most traded companies on the Bucharest Stock Exchange (BVB), passed the level of 10,600 points on Friday, February 5, and is less than 2% away from its all-time high set in July 2007 (10,813 points).

The BET has gained 8.2% since the beginning of this year and has already moved past the multi-annual highs set in January-February 2020, before the pandemic wiped close to 30% of its value in just one month.

The main growth engines for the local market this year have been the energy stocks. Power producer Nuclearelectrica (SNN), has gained 27% since the beginning of this year. Gas producer Romgaz (SNG) has recorded a 15% increase, power grid operator Transelectrica (TEL) has gone up 13%, and oil and gas group OMV Petrom (SNP) has gained 12.5%.

The companies in the energy sector have weathered the pandemic better than companies in other sectors and are expected to pay high dividends from last year’s profits. For example, OMV Petrom announced that it would pay a similar dividend as last year, despite its profit falling because of the low oil price and subdued fuel sales.

Meanwhile, the shares of the two large banks listed on the Bucharest Stock Exchange – Banca Transilvania (TLV) and BRD – recorded only slight gains this year as the pandemic’s negative effects on the local economy are expected to hit the local banking sector this year.

However, overall, the local stocks market’s evolution has been positive this year, similarly to those of international markets.

(Photo source: Inquam Photos/Diana Oros)