Bucharest Stock Exchange recovers some of its losses in November amid renewed optimism from investors

The Bucharest Stock Exchange’s BET index has gained over 9% in the last month amid positive evolutions in the international markets.

A moderation in inflation in the US has reportedly renewed the investors’ optimism that the Federal Reserve (the US central bank) will slow the pace of interest rate increases. As a result, the S&P 500 index, which follows the evolution of the biggest American listed companies, has gained over 7% in the last month.

The European markets have seen even stronger increases, with the Eurostoxx50 index, which follows the biggest 50 listed companies in the Euro area, gaining almost 13%. The Polish market has been one of the top performers in the last month, with an 18% increase.

In Bucharest, the annual inflation rate reported by the National Statistics Institute (INS) eased in October from a high of almost 16% in September. Romania’s National Bank (BNR) also decided to moderate the pace of its monetary policy rate hikes.

Meanwhile, the first GDP data for the third quarter of 2022 showed that the economic growth remained robust at 4% year-on-year.

The positive evolution of Romanian stock prices was also supported by positive results reported by some of the biggest companies listed on the Bucharest Stock Exchange. Lenders BRD and Banca Transilvania (TLV), which posted strong profits in the first nine months of the year, saw their shares gain 20%, respectively 18% in the last month. The shares of energy companies Electrica (EL) and Transelectrica (TEL) also went up by almost 19%.

See below the evolution of the most traded stocks on the Bucharest Stock Exchange in the last month.

Even with the recent growth, the BET index is still more than 10% down year-to-date. However, the BET-TR index, which also includes the dividends paid by companies in the BET is just 2% below the level recorded at the end of 2021.

(Photo source: BVB)