Bucharest Stock Exchange sees worst day in almost two years
The Bucharest Stock Exchange experienced its worst trading session in almost two years on Friday, March 4, as its blue-chip BET index dropped by 5.35%.
The biggest local lender – Banca Transilvania (TLV) – saw its shares drop by 7.17%, while local medical services provider Medlife (M) experienced a correction of 8.6% and the shares of Moldova-based Purcari Wineries (WINE) lost 9.5% of their value. Local industrial group Teraplast (TRP) was the day’s biggest loser with a price drop of over 13%.
Since February 24, when Russia invaded Ukraine, the BET has lost over 13% of its value.
Friday’s evolution was in line with that of the major European markets, which also recorded strong corrections.
The German blue-chip index – DAX – lost 4.4% on Friday, the French CAC 40 ended the day down 5% while the Italian FTSE MIB index went down by as much as 6.2%.
Investors worldwide are worried that the economic consequences of the war in Ukraine and the sanctions imposed on Russia will have a substantial negative impact on the world economy.
The International Monetary Fund (IMF) warned on Friday that the consequences of the war in Ukraine are already very serious: “Energy and commodity prices, including wheat and other grains, have risen in addition to inflationary pressures caused by supply chain disruptions and the Covid-19 pandemic. Price shocks will have a global impact, especially on poor households for which food and fuel account for a larger share of spending. If the conflict escalated, the economic damage would be even more devastating,” according to a statement quoted by News.ro.
Europe, which is more dependent on Russian gas and oil than other regions of the globe, will likely feel a stronger shock.
(Photo: George Calin/ Inquam Photos)