Number of investors at the Bucharest Stock Exchange continues to decline

The number of trading accounts active on the Bucharest Stock Exchange reached 53,550 at the end of 2019, down by 1% compared to the previous year, according to data from the Fund for Investor Compensation (FCI) consulted by Ziarul Financiar.

The data reflects the number of trading accounts opened at local brokerage firms, not the actual number of investors, which could be lower given that one investor can trade through several firms, the fund’s report mentions.

The number of trading accounts at the end of 2019 was the lowest one since the FCI started publishing such data in its annual reports, over ten years ago, according to Ziarul Financiar.

“I don’t think that lack of money is the cause for the lower number of investors. I think the main reason is lack of financial education,” local economist Dragos Cabat told Ziarul Financiar.

The Bucharest Stock Exchange’s main index BET recorded an advance of 35% in 2019 while the BET-TR index, which also takes into account the dividends paid by the companies in the BET, gained 47% last year.

(Photo source: Inquam Photos/Diana Oros)