Romania’s stock exchange goes up as investors wait for upgrade decision

The Bucharest Stock Exchange (BSE) recorded significant growth during the first eight months of this year when all its indices rose by double-digit rates and the total trading value on the equity segment reached EUR 1.46 billion.

BET-TR, the blue-chip index that also measures the gains from dividends besides the capital gain, soared by 36% in the first eight months, Ziarul Financiar reported. On September 23, the year-to-date gain was 40.4% after the local stocks continued their rally in September.

The market evolution was strongly supported this year by the dividends and the results listed companies presented to investors. More recently, the possibility that the Bucharest Stock Exchange could be promoted to emerging market also boosted the investors’ confidence.

On September 26, British stock market index provider FTSE Russell will announce the decision on whether or not it will include BSE in the emerging markets category. A positive decision would push up the prices of local shares (hence the indices) closer to their fundamental value as the BSE would enter the radar of bigger investment funds, specialized in emerging markets. Currently, the local stock exchange is the second cheapest in the European Union, after Spain (in terms of price per earnings ratio).

(Photo source: Facebook/Bursa de Valori Bucuresti)