Romania’s stock exchange down in 2022 amid war in Ukraine

BET, the main index of the 20 most liquid companies at the Bucharest Stock Exchange (BVB), ended 2022 with a decline of 10.7%. The market plunged after Russia invaded Ukraine on February 24 and later during several episodes (May, September) as the investors were pricing in the impacts of the crisis in terms of energy prices and interest rates.

BET-TR, which includes the dividend yields for the 20 companies, ended the year in the red (-1.85%) for the first time since 2011, Ziarul Financiar reported. Even BET-NG, the index of energy and utility companies, lost 5% in the year amid mixed dynamics of companies.

The BETAeRO index, which includes the shares traded on the alternative market (the so-called “growth shares”), plunged by 22.2%.

The overall decline came, however, after robust growth rates in the previous years: BET soared by 33% and BET-TR by 40% in 2021.

The local capital market ended 2022 with a total capitalization of RON 211 bln (EUR 42 bln), about RON 38 bln (-22%) less than at the end of 2021.

The capitalization of the main market dropped by 13.9% to RON 197 bln at the end of 2022. The average daily liquidity in 2022 for the main market (shares only) was RON 50.9 mln, the equivalent of EUR 10.3 mln.

Overall, the equivalent of 6.5% of the market capitalization (shares only) was traded during 2022 – in line with the past five year’s average.

(Photo source: Inquam Photos/George Calin)