Bursa de Valori Bucuresti : New milestones for the Romanian capital market. Over 1 million transactions performed through BVB in the first 8 months and over 100000 investors

Monthly report

August 2022

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New milestones for the Romanian capital market: Over 1 million transactions performed through BVB in the first 8 months, and over 100,000 investors

• Over 1 million transactions were carried out through the Bucharest Stock Exchange (BVB) in the first 8 months of this year, almost 42% more than in the same period last year.
• More than 117,000 investors are present on the Romanian stock market, according to the FCI data at the end of the first semester.
• The Romanian capital market reached a new all-time high last month when looking at the BET-TR index, which also includes dividends.

Radu Hanga, BVB President:

1. We see a growing interest in the Romanian capital market and the investors, both Romanian and international, benefit from an unprecedented sectoral diversification offered by listed companies.

1. The capital market in Romania manages to reach new milestones and perform. We have signals that Romania is being viewed with interest by companies in the region who consider getting listed on BVB.

Adrian Tănase, BVB CEO:

1. We have provided market participants with safe and stable systems even in conditions of increased volatility, the brokerage community has been active in terms of listings and facilitated investor access by opening online accounts, and the authorities have supported market development projects, which makes us confident in the plans we have for the development of the stock exchange.

1. Romania has become attractive not only among large international investors by consolidating its status as an emerging market, but also among companies from outside the borders who want to access the opportunities offered by the Romanian capital market.

Monthly report August 2022

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Active investors on the Bucharest Stock Exchange (BVB) have bought and sold financial instruments at a very active pace so far this year. More than 1 million transactions were carried out on the regulated market of BVB between January and August this year. Investment activity was more subdued in the summer months, with July and August being the only months when the number of transactions was below the 100,000 mark. The most active month from this point of view was March, when almost 200,000 transactions were registered in the BVB system. Overall, compared to the 715,000 transactions from January to August 2021, the number of transactions increased by almost 42% in the first 8 months of this year. The evolution of this indicator can be seen in Graph 1.

Graph 1. The evolution of the number of trades on the Bucharest Stock Exchange

		Over 1,000,000 trades performed
		through BVB in the first 8 months
250,000
			199,947
200,000
150,000	136,167	138,861				127,019
				117,920
				104,274		92,650	94,585
100,000			117,964
		95,569
						96,971	92,234
50,000
75,353			71,335	81,527	83,852
0,000
	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug
				2022	2021

Graph 1: The evolution of the number of trades with all types of financial instruments on the BVB's Regulated Market for

the first 8 months from 2022 vs the first 8 months from 2021. Source: BVB.

A significant milestone reached by the capital market in Romania was exceeding the threshold of 100,000 investors. After a sustained upward trend in the previous quarters, the number of those trading on the Romanian stock market exceeded 117,000 investors, as shown by the data of the Investor Compensation Fund (FCI) for the first half of this year. The number of investors increased by 33% in the second quarter compared to the first quarter, according to the FCI data. The accelerated increase in the number of investors is determined, on the one hand, by the continued entry of new investors into the capital market, but also by a change in the regulations regarding the reporting of compensable clients.

Monthly report August 2022

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"We see a growing interest in the Romanian capital market and the investors, both Romanian and international, benefit from an unprecedented sectoral diversification offered by listed companies. Of course, we are witnessing a moderation in the pace of financing caused by a series of risks that influence global markets and by a complicated regional context, but even in a difficult international context, the capital market in Romania manages to reach new milestones and perform. We expect volatility to continue to be present in the market in the period ahead, which will bring opportunities for both investors and companies, and we have signals that Romania is being viewed with interest by companies in the region who consider getting listed on BVB", said Radu Hanga, President of the Bucharest Stock Exchange.

"We have managed to achieve a series of outstanding performances regarding the Romanian capital market: over 117,000 investors have access to the stock exchange and over 1 million transactions have been performed so far this year. We have provided market participants with safe and stable systems even in conditions of increased volatility, the brokerage community has been active in terms of listings and facilitated investor access by opening online accounts, and the authorities have supported market development projects, which makes us confident in the plans we have for the development of the stock exchange. Romania has become attractive not only among large international investors by consolidating its status as an emerging market, but also among companies from outside the borders who want to access the opportunities offered by the Romanian capital market", said Adrian Tănase, CEO of the Bucharest Stock Exchange.

The capital market in Romania managed to end the first 8 months in positive territory through the lens of total return indices, which also include dividends. For example, the BET-TR index closed the last trading session in August at a level of 23,438 points, up by 1.4% compared to the end of last year. Last month, BET-TR hit a new record high after ending the August 18 trading session at 24,633 points. In contrast, the BET index, which includes the 20 most traded companies listed on the BVB, is in negative territory, down 7.7% from last year. BET-NG, the index that reflects the evolution of listed companies whose main field of activity is energy and related utilities, slowed its advance recorded in July, but managed to end the first 8 months in positive territory, with +1.8%.

The capitalization of Romanian companies listed on the BVB reached almost RON 137 billion, the equivalent of EUR 28 billion, at the end of the first eight months of this year. This level is slightly below the one recorded at the end of last year and appears in a context dominated by the volatility in the capital markets, but also by a multitude of other risks such as the evolution of the coronavirus pandemic, rising inflation, increasing interest rates, rising energy prices, dysfunctional supply chains, fears of a possible recession in developed markets, as well as a complicated regional context.

At the level of all types of financial instruments traded on the BVB Regulated Market, the total trading value in the first 8 months reached RON 15.3 billion, the equivalent of EUR 3.1 billion, up 34% compared to the same period of the year last. The average daily trading value for all traded financial instruments was RON 91.8 million, up 34.9% compared to the January-August period of last year.

Monthly report August 2022

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News to investors

• Bucharest Stock Exchange (BVB) and Depozitarul Central continue the digital transformation efforts by launching the Investors Enrollment Platform with the help of its partners, Aurachain and eVOTE. Through this platform, following an identification procedure for individuals, user accounts are created, enabling investors to participate online and vote electronically at the General Shareholders Meetings organized by the companies listed on BVB. This new digital solution was created by Aurachain, a low-code development platform that helps businesses to rapidly digitize their operational processes. As part of the project, eVOTE provides the first online and physical participation solution for the General Shareholders Meetings, introduced in Romania more than two years ago and currently used by over 20 companies listed on BVB.
  Further details are available here.
• The shares of the Bucharest Stock Exchange (BVB), a company listed in 2010 on its own regulated spot market in the Premium category, will be included, from September 19, in the FTSE Russell indices dedicated to Emerging Markets. The BVB shares will be part of the FTSE Global Micro Cap, with the inclusion announced by the global index provider following its quarterly review published on August 19. The Bucharest Stock Exchange will be the seventh Romanian company present in the FTSE Global Micro Cap indices, alongside Aquila, Bittnet Systems, Conpet, Purcari Wineries, Sphera Franchise Group, and Transport Trade Services. In total, starting from September 19, Romania will have 13 companies included in the FTSE Russell indices dedicated to Emerging Markets, seven issuers in the FTSE Global Micro Cap indices and six issuers in the FTSE Global All Cap indices.
  Further details are available at this link.
• Meta Estate Trust, a holding company that operates in the real estate sector, has today entered on August 29 the equity segment of the Bucharest Stock Exchange's Multilateral
  Trading System, the AeRO market. Shares in Meta Estate Trust will be traded under the ticker symbol "MET". The company's listing follows its initial public offering, which ran from July 20 to August 2 and brought in 14 million RON from investors. Meta Estate Trust held its public offering from 20 July to 02 August, which attracted investments totalling 14 million RON into the company. The company's subscribed and paid-up share capital is 87 million RON, made up of 75.7 million in common stock and 11.2 million in preference shares (without voting rights), which together represent 87.1% and 12.9% of total share capital respectively.
  Further details are available at this link.

Monthly report August 2022