Bucharest Stock Exchange Evolution, S1 2008

Septembrie 2008

LUCIAN ANGHEL - Presedinte BUCHAREST STOCK EXCHANGE

In the first semester of 2008, Bucharest Stock Exchange (BVB) was characterized by the market decrease, as an indirect consequence of the US subprime crisis. The BVB S1 evolution was mainly determined by the change of foreign investors’ perception regarding the Romanian capital market and the economy, as a whole; the foreign investors on the exchange have backed down in fear that the Romanian economy would be heavily affected as well by the crisis, although that eventually did not happen. However, BVB is expected to make a come-back in the following period after a number of important IPOs that have been announced and new financial product launch.

The market condition was also reflected in the market indicators, as presented below.

 

Market capitalization

At the end of S1 2008, the total market capitalization for the two BVB market segments was about EUR 35 bn, EUR 4 bn higher than at the end of 2007. 86% of it is concentrated by the regulated market and the rest by the Rasdaq market. Starting February 2008, Erste Bank has become the first foreign issuer listed at BVB, with a market share of 38% in the total market capitalization. In addition to this, S1 brought three successful IPOs for the regulated market: Casa Bucovina, Contor Group and Teraplast.

 

Turnover

The daily average turnover for S1 2008 cumulated for both market segments (regulated market and Rasdaq) was approximately EUR 11.4 mn, 50% lower than the same indicator registered for the S1 2007. Split by market segments, the daily average turnover for the regulated market decreased by 46 % and for Rasdaq market by 64%, compared to S1 2007. What is specific for the S1 2008 is that even though the prices went down, this took place on low trading volumes.

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