"The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market.” Milton Friedman
“To know values is to comprehend the meaning of movements in the market.” Charles Dow
“If a business does well, the stock eventually follows.” Warren Buffett
"The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder
“As a general rule, the most successful man in life is the man who has the best information.” Benjamin Disraeli
“Someone's sitting in the shade today because someone planted a tree a long time ago." Warren Buffett
November 25, 2019
The Romanian capital market cemented its robust growth pace at the end of the first ten months of the year after all the indices of the Bucharest Stock Exchange (BVB) managed to preserve the strong positive results. By far, the best results were displayed by the indices that also included the dividends. BET - Total Return (BET-TR), which also included the dividends paid by the companies from the BET index, went up by 40%, while BET-XT-TR, which includes the most-traded 25 companies and their dividends, surged by 37%. Ten months into the year, BET-FI, which mirrors the evolution of the five Financial Investment Companies and Fondul Proprietatea, went up by 22%.
"As attractive as market developments are, investors need more and more examples of local companies to show they can pass the market test. As a market trend, we have noticed that more and more companies are accessing the stock exchange to develop their businesses by issuing bonds, which is an alternative to the bank-based financing as it can provide, in addition to access to capital, a significant increase in visibility and better conditions for subsequent financing schemes. Bond issues can be considered as the anteroom of future IPOs - obviously, to the extent that such an operation is part of the shareholders’ vision - because they allow companies to have direct and relevant contact with investors and entities representing the capital market," said Adrian Tanase, CEO of BVB.
The total trading value for equities accounted for EUR 1.77 billion from the beginning of the year until the end of October. At the end of the first 10 months, the capitalization of the Romanian companies listed on BVB amounted to RON 106.3 billion or EUR 22.3 billion.
November 22, 2019
November 18, 2019
November 07, 2019
International Investment Bank (IIB) recently attracted a new round of financing on the Romanian capital market, for the fifth consecutive year. The bonds, with a 3yrs maturity and a fixed interest rate of 3.98% p.a. payable annually, were listed on Thursday, November 7th, on the Bucharest Stock Exchange, under IIB22 ticker. The issue comprises 50,000 bonds, with a nominal value of RON 10,000, which means a total value of RON 500mn (EUR 105mn).
“We are proud to see the outcome of this last bond issue. It vividly demonstrates the international investor community’s confidence in the Bank’s strategic course and a sign of the Bank’s recognition as a Europe-based multilateral development institution”, stated Nikolay Kosov, the Chairperson of the IIB Management Board.
“We are glad that it has become a tradition for International Investment Bank to attract financing on the Romanian capital market and that they see a financing partner in BVB. The amounts attracted by the financial institution, together with other financing rounds carried out by other Romanian companies this year, prove that the Romanian capital market is a solid mechanism and fulfills the financing role for the issuers that prove serious and win the investors' confidence”, said Adrian Tanase, BVB CEO.
November 05, 2019
November 04, 2019
One of the constant lines of action of Bucharest Stock Exchange (BVB) aims the alignment with stock exchange practices and standards in the field, including those related to trading mechanisms and techniques.
Volatility interruption mechanism is enrolled in this endeavor of BVB, being a way of protection and an instrument of market risk management, to prevent artificial disturbances of the market price, contributing to the improvement of the prices’ continuity and ensuring a high degree of market quality.
By signaling the registration of a certain degree of price volatility, based on the demand and supply recorded for a financial instrument, the prerequisites for executing orders increase in case of registration the accentuated fluctuations of the market price for a financial instrument in a short period of time.
This mechanism will be applied within BVB starting with December 2nd, 2019, for shares in BET and BET-FI indices, as well as for the international shares from the regulated market, replacing the old mechanism of price management under volatility conditions, based on extension of the variation limits.
The mechanism can be activated for a financial instrument in the stages having auction and continuous trading types from its main market, consisting in registration of an unscheduled auction stage, that will allow participants to react to new market conditions, as follows: - passing the market from a stage having continuous trading type (Open type) to a stage having auction type (Pre-open type) for a short period of time, when the potential price of a trade exceeds a certain limit or - the extension of a stage having auction type, provided that the potential fixing price exceeds a certain limit.
The way of addressing the volatility limits through this mechanism is also managed through the specific price tunnels, as follows: - maximum tunnel – is represented by the maximum price variation, outside which no orders can be placed (current applicable tunnel); - static tunnel - is a price tunnel which has as reference the price of the last fixing registered in the current session or, if it does not exist, the reference price; - dynamic tunnel - is a price tunnel which has as reference the price of the last transaction, or, if it does not exist, the reference price.
Depending on the status of a symbol in its main market, the following dynamic tunnels can be activated, as follows:
the dynamic tunnel in Pre-open stage (Preopen)
if the potential opening price is outside this tunnel, then the symbol-market enters in Extended Pre-open (PreopenXT stage) for a time period, and then enters in the Open state, regardless of the value of the new potential opening price.
the dynamic tunnel in the Open stage
if the potential price of a trade is outside this tunnel or outside the static tunnel, then the symbol-market enters in Volatility Interruption stage Vi (therefore the trade is not executed) for a time period, and then it enters in the Extended Volatility Interruption stage (ViXT) or in the Open stage.
the dynamic tunnel in Volatility Interruption stage (Vi)
if the potential opening price is out of this tunnel then the symbol-market enters in the Extended Volatility Interruption state (ViXT) for a time period, entering afterwards in the Open stage, irrespective of the value of the new potential opening price
From the perspective of order operations, the Extended Pre-open (PreopenXT), Volatility Interruption (Vi) and Extended Volatility Interruption stages are equivalent with the Pre-open stage.
Another concept introduced together with the implementation of this mechanism aims to ensure a random time duration, between a minimum of 3 minutes and a maximum of 3 ½ minutes for the Extended Pre-open (PreopenXT), Volatility Interruption (Vi) and Extended Volatility Interruption stages - for a better neutrality and objectivity of the conditions to determine the market prices.
The application of this mechanism at the level of the main market of a financial instrument implies a correlated approach also at the level of its Deal market, by applying static variation limits, which are calculated having as mark the reference price for the static tunnel from the main market.
The calibration of the parameters applicable to the volatility interruption mechanism – values of the price tunnels, time duration corresponding to the symbol-market entities, as well as other information – was carried out based on European principles and experience in the field. Information regarding the applicable parameters are found in the document Technical specifications regarding the specific elements of the volatility interruption mechanism, on BVB’s website, in the section BVB Regulations.
October 27, 2019
October 23, 2019
Romanian blue chip companies met Nordic investors on October 17, 2019 at the second edition of the investor conference “Romanian Day in Stockholm”, organized by Raiffeisen Centrobank (RCB) and Bucharest Stock Exchange (BVB). This event offered investors the opportunity to meet top Romanian companies listed on the Bucharest Stock Exchange on a one-on-one basis.
The event comes after its successful first edition and the recent announcement of the global index provider FTSE Russell that Romania was promoted from Frontier Market to Emerging Market status effective as of September 2020.
In order to reach this status, the Romanian capital market had to pass a significant market reform in the last six years, which brought new and improved market mechanisms, easier market access for investors, a supportive fiscal environment for institutional investors, transparent and qualitative corporate reporting by issuers, the availability of capital market information flow and legislation in English, a competitive trading framework, improved corporate governance for listed companies, and the unfreezing of private listings for equities and bonds on the Bucharest exchange. The recent years’ development was supported also by the good fundamentals of listed companies and one of the highest dividend yield in the world offered by the Romanian capital market.
"It is important for us as a market to keep growing our relationships with foreign investors and the Nordic experience has been a great one in this regard. Moreover, it has kept us permanently connected with what are the key factors for portfolio investment decision," stated Adrian Tanase, BVB’s CEO.
“Trust is of utmost importance when establishing relationships with investors. That is why even in digital times face-to-face meetings are indispensable for building trust and maintaining open communication between investors and companies. We are thankful that we can facilitate these meetings and foster fruitful discussions together with the Bucharest Stock Exchange,” commented Klaus della Torre, RCB Head of Equity Sales.
Raiffeisen Centrobank AG (RCB) is the competence center for equities and derivatives in Austria with a strong regional focus on Central and Eastern Europe. As a full service provider of certificates, the bank offers currently around 6,000 products for each market phase and investment horizon. The coverage universe of RCB company research comprises about 125 Austrian and international titles. Raiffeisen Centrobank AG is a 100% subsidiary of Raiffeisen Bank International AG.
September 27, 2019
We are here facing a historic moment: it’s the international recognition that Romania deserves to be promoted and I am happy and proud to lead the team that made it possible. When the stock market is doing well the economy is doing well. I do hope this status upgrade will make more managers from state-owned and privately held companies see the stock exchange as the go-to place where they can further develop their businesses. We are going to celebrate 25 years of modern trading at the Bucharest Stock Exchange in November next year. We aim to show our partners that we are committed to further improve the market infrastructure. To this extent, the CCP project will create the framework required to significantly improve market liquidity. Our goal for the next 10 years is to double the market representativeness in the local economy from the current level of 10% to 20% of GDP.
Romania’s promotion to the Emerging Market status can be considered, from the economic standpoint of the capital market, the equivalent of the country’s admission to the European Union. Romania deserved to be promoted to the Emerging Market status as it has repeatedly proved itself as being a functional and accessible market. Funds much larger than the ones that have invested so far and that manage hundreds of billions of euros will be allowed to invest here in the next years as these funds’ managers are restricted by the prospectus to invest in Frontier Markets. Romanian investors could benefit from this promotion in the long run if they choose to reap the rewards offered by the investment opportunities in the stock market. We would like to thank all the capital market stakeholders and authorities who have been close to the stock exchange in this capital market reform process that started around 7 years ago.
September 24, 2019
August 29, 2019
August 16, 2019
August 07, 2019
July 24, 2019
July 03, 2019
June 12, 2019
The Bucharest Stock Exchange (BVB) is hosting on June 14 the international capital markets conference of the Federation of Euro-Asian Stock Exchanges, ConFEAS 2019.
June 11, 2019
May 31, 2019
Bucharest Stock Exchange (BVB), a fundamental institution of the capital market, welcomes the Government's decision, which amended several provisions of Government Emergency Ordinance (GEO) 114 regarding the Pillar II pension system so as to provide improved conditions in relation to the legal framework created at the end of last year.
May 24, 2019
May 21, 2019
May 15, 2019
May 06, 2019
April 19, 2019
April 08, 2019
Made in Romania: BVB League program has designated its 50 semi-finalist companies through a complex selection process from a total of nearly 300 nominated entrepreneurial companies. At its third edition, the program reconfirmed the growing success among the Romanian business community, with a 50% increase in the number of nominated companies versus the previous edition.
The growing interest in Made in Romania is also due to the support offered by the Bucharest Stock Exchange (BVB) partners, the members of the Nomination Committee, the members of the Jury, and the companies that entered the BVB League in the first two editions of Made in Romania.
March 15, 2019
March 05, 2019
CFA Society Romania, member of the CFA Institute (USA) - the investment professionals' association, organized, in the academic year 2018 – 2019, the national phase of the 7th "CFA Institute Research Challenge".
After a close competition between seven teams of students belonging to universities of Romania and Republic of Moldova, the winning team this year was the one of the Faculty of Finance and Banking within Bucharest University of Economic Studies (FABBV). The team consisted of students Andreea Solomon, Robert Grecu, Luca Nicolae and Alexandru Zarnoeanu, led by Anamaria Ciobanu as coordinating teacher and mentor Andreea Mladin, CFA, volunteer and member of the CFA Society Romania.
March 04, 2019
February 20, 2019
February 18, 2019
February 15, 2019
January 29, 2019
January 25, 2019
January 21, 2019