>>>The cumulative value of transactions with all types of financial instruments on the Regulated Market of the Bucharest Stock Exchange (BVB) exceeded, for the first time, the threshold of RON 20 billion, the equivalent of over EUR 4 billion; >>> The average daily liquidity for all types of financial instruments registered a new maximum: RON 79.4 million or EUR 16.1 million; >>> New all-time highs for BET (over 13,000 points) and BET-TR (over 23,000 points) indices, after increases of 33% and 40%, respectively: >>> Multiple records were also recorded on AeRO: the capitalization of listed companies increases by 136%, the total trading value by 253%, and the average daily value of transactions by 249%. The first dedicated AeRO index ends the year at 1,052 points; >>> The capitalization of the local companies listed on the Regulated Market of BVB and AeRO reached the highest level in history and exceeded RON 160 billion; >>> Romania’s visibility in Emerging Markets indices improved significantly so that by the end of the year 7 companies were included in the indices of the global provider FTSE Russell.
The number of investors on the stock exchange continued to grow: over 74,000 direct investors, FCI data show at 9 months, and 540,000 investors in mutual funds, according to AAF data at 11 months; >>> New all-time high for the total value of net assets of privately managed pension funds, where 8.1 million Romanians contribute to Pillar II and III pensions: RON 90 billion at the end of the first 9 months of 2021, according to APAPR data; >>> BVB has consolidated its fundamental role as a financing platform for the Romanian economy: 23 companies were listed on the stock market in 2021 and attracted financing of RON 234 million, and the 45 bond issues listed on BVB last year exceeded EUR 1.8 billion.
The Bucharest Stock Exchange (BVB), a fundamental institution of the Romanian capital market, has successfully fulfilled its fundamental role of financing the economy in a volatile domestic and international context influenced by the evolution of the coronavirus pandemic. The Romanian capital market recorded in 2021 the best year in history and set a series of new records at the level of several development indicators.
As far as BVB’s Spot Regulated Market is concerned, new highs have been reached in terms of liquidity indicators. Thus, the cumulative value of transactions with all types of financial instruments exceeded, for the first time, the threshold of RON 20 billion, the equivalent of over EUR 4 billion. This level is 9.5% higher than that posted at the end of 2020, when total transactions reached RON 18.3 billion, the equivalent of EUR 3.77 billion. After one year with 252 trading sessions, the average daily liquidity for all types of financial instruments reached a new record of RON 79.4 million (EUR 16.1 million), increasing by 8.2% compared to the level of RON 73.4 million (EUR 15.1 million) achieved in 2020.
The intensification of the investment activity on BVB made the Romanian capital market reach new highs in terms of the level registered by the BET-TR index, which also includes the dividends, after ending the year 2021 at 23,113 points, which corresponded to a 40% increase in one year. A new all-time high was also recorded for the BET index, which includes the 19 most traded companies, and which ended the year at a level of 13,061 points, up 33.2% compared to 2020.
New all-time highs for liquidity indicators were also recorded on the Multilateral Trading System (SMT). The total trading value with all types of financial instruments reached RON 1.63 billion (equivalent to EUR 330 million), increasing by 253% compared to the level of RON 460 million (equivalent to EUR 95 million) in 2020. The average value daily trading value for the 252 trading sessions last year was RON 6.5 million, up 249% compared to RON 1.83 million a year prior. In October last year, BVB launched the first index dedicated to the AeRO market. Called BET AeRO, this index started at 1,000 points and ended 2021 at 1,052 points.
The Romanian companies listed on BVB have reached the highest values in history. The capitalization of domestic companies on the Regulated Market exceeded RON 141 billion, or EUR 28.5 billion, increasing by 38% compared to the level at the end of 2020, of RON 102 billion. The market value of the companies listed on SMT was RON 19.8 billion, or EUR 4 billion, up by over 200% compared to the value in 2020, of RON 9.7 billion. Cumulatively, the Romanian companies listed on BVB reached a record market value of RON 161 billion, 44% above the capitalization reported in the last trading session of 2020.
In 2021, the Romanian stock market consolidated its fundamental role as a financing platform for the Romanian economy: 23 companies were listed on the stock exchange in a single year, another 27 companies issued bonds, and the Romanian state attracted through primary offers of Fidelis government bonds over EUR 875 million. In total, the financing rounds attracted by the 23 companies reached EUR 234 million in 2021, and the 45 fixed income issues listed on BVB attracted financing of over EUR 1.8 billion.
The effervescence of the financing rounds carried out on BVB also translated into an increased interest from investors. Thus, the number of direct investors on the stock exchange exceeded 74,000 participants, according to the data of the Investor Compensation Fund (FCI) at the level of the first 9 months of last year. The number of those who invest indirectly on the stock exchange, through investment funds, reached 540,000 investors at the end of November, according to the Romanian Association of Fund Managers (AAF). An all-time high was reported in terms of the total value of the net assets of privately managed pension funds, where 8.1 million Romanians contribute to Pillar II and III pensions. This value exceeded RON 90 billion at the end of the first 9 months of 2021, according to APAPR data. The total Assets Under Management of privately managed pension funds and the number of participants are constantly growing, and the private pension system has evolved positively throughout its operation. Government bonds and equities are the main financial instruments in which privately managed pension funds have invested.
Romanian companies have become more visible not only domestically but also internationally after Romania increased its presence in the indices of the global provider FTSE Russell to seven companies, starting from December 20, 2021: Banca Transilvania (TLV), Nuclearelectrica (SNN), OMV Petrom (SNP), TeraPlast (TRP) and One United Properties (ONE) in the FTSE Global All-Cap indices, and Bittnet (BNET) and Transport Trade Services (TTS) in the FTSE Global Micro-Cap index.