Monthly report

October 2022

Invest in your future. Own it

2

Over 128,000 investors on the Bucharest Stock Exchange, an all-time high for the Romanian capital market

  • Record number of investors on the stock exchange: the number of direct investors at the Bucharest Stock Exchange (BVB) is continuously increasing for the 11th consecutive quarter and reached 128,000 investors for the first time, according to FCI data at the end of the first 9 months.
  • Over 7.9 million Romanians who contribute to Pillar II of pensions have exposure to financial instruments listed on the BVB, and over 450,000 Romanians already invest through open investment funds.
  • The total value of trading with all types of financial instruments reached EUR 3.68 billion in the first 10 months, increasing this year by 17%.

Radu Hanga, BVB President:

  1. The extent of the stock market phenomenon that has attracted more and more Romanians is remarkable because the last time the Romanian stock market had 100,000 direct investors was in 2009, and this year we reached an absolute record: 117,000 investors at the end of the second quarter and an increase to 128,000 investors at the end of the third quarter.
  1. Being on the stock market today, as an investor or a listed company, has become a normality and we believe that this is a healthy basis for a financially educated Romania. At the BVB level, we run a series of projects that, taken together, contribute significantly to the success we have today. We aim to do even more and are involved in developing a capital market strategy

Adrian Tănase, BVB CEO:

  1. More and more Romanians are investing in the stock market because the capital market has unequivocally become the most attractive option for investing their savings. It is for the first time that 128,000 investors are present on our stock market, and this proves that the capital market is gaining particular importance in the financial plans of Romanians.
  1. Another example that the stock market is developing in the right direction is given by the evolution of the BVB share, as an issuer. BVB shares reached a 5-year high, and investors who were patient were rewarded. The performance of the BVB shares so far this year has reached +34.4%, including dividends.

Monthly report October 2022

3

Absolute record number of investors at the Bucharest Stock Exchange (BVB): over 128,000 direct investors are present on the Romanian stock exchange, as shown by the data of the Investors Compensation Fund (FCI) at the end of the first 9 months. It is the highest value ever recorded on BVB and substantially surpassed the previous record of 101,000 investors set in 2009. The number of investors began to grow steadily with the outbreak of the coronavirus pandemic and the data show 11 consecutive quarters of increases in the number of those trading on the Romanian stock market. For a comparative picture, the evolution of the number of BVB investors can be seen in Chart 1.

Chart 1. The evolution of the number of direct investors on the Bucharest Stock Exchange (BVB)

140.000

128.026

120.000

117.292

101.254

100.000

101.121

97.753

86.465

87.975

94.545

81.793

80.000

92.222

93.189

88.345

90.621

85.381

78.062

71.287

74.436

70.749 70.756

74.571

66.493

60.456

65.637

74.517

64.392

61.246

60.000

87.664

91.147

92.838

88.143

83.331

83.308

72.154

71.152

62.149

58.290

55.081

57.323

77.026

92.865

91.721

88.151

81.218

83.292

83.520

71.376

59.984

55.258

54.645

65.304

89.813

86.456

88.148

86.073

78.253

71.108

70.506

59.467

53.981 53.938 53.676

53.550

40.000

20.000

0

Chart 1: The evolution of the number of direct investors on the Bucharest Stock Exchange between December 2006 and

September 2022. Source: FCI, BVB.

Regarding the number of those who invest indirectly on the BVB, at the end of the first nine months of this year, over 7.9 million Romanians who contribute to Pillar II of mandatory private pensions had exposure to financial instruments listed on the BVB, according to the data of the Association for Privately Administered Pensions in Romania (APAPR) and the Financial Supervision Authority (ASF). Also, at the end of the first nine months of the year, more than 450,000 Romanians invested indirectly on the BVB through open investment funds, as shown by the data of the Association of Romanian Fund Managers (AAF).

Monthly report October 2022

4

"The extent of the stock market phenomenon that has attracted more and more Romanians is remarkable because the last time the Romanian stock market had 100,000 direct investors was in 2009, and this year we reached an absolute record: 117,000 investors at the end of the second quarter and an increase to 128,000 investors at the end of the third quarter. Being on the stock market today, as an investor or a listed company, has become a normality and we believe that this is a healthy basis for a financially educated Romania. At the BVB level, we run a series of projects that, taken together, contribute significantly to the success we have today. We aim to do even more and are involved in developing a capital market strategy", said Radu Hanga, President of the Bucharest Stock Exchange.

"More and more Romanians are investing in the stock market because the capital market has unequivocally become the most attractive option for investing their savings. It is for the first time that 128,000 investors are present on our stock market, and this proves that the capital market is gaining particular importance in the financial plans of Romanians. Another example that the stock market is developing in the right direction is given by the evolution of the BVB share, as an issuer. BVB shares reached a 5-year high, and investors who were patient were rewarded. The performance of the BVB shares so far this year has reached +34.4%, including dividends", said Adrian Tănase, CEO of the Bucharest Stock Exchange.

In 2022, at the end of the first ten months, 376 companies were listed on the BVB, 83 on the Regulated Market (RM) and 293 on the Multilateral Trading System (MTS). This year, until November 1, there were 210 trading sessions, in which more than 1.43 million transactions were made with all types of financial instruments, both on RM and MTS. The total value of trading with all types of financial instruments carried out on these venues in the first 10 months of 2022 was almost RON 19 billion, equivalent to EUR 3.8 billion. Of this amount, RON 18.2 billion or EUR 3.68 billion represent the total value of trading with all types of financial instruments on the Regulated Market, which corresponds to a 17% increase in the first 10 months of this year.

The average daily liquidity reached RON 86.6 million, the equivalent of EUR 17.5 million, in the January-October period of this year, which corresponded to an increase of 17.5% compared to the similar period of the previous year.

The capital market in Romania increased by 1.5% in October according to the BET-TR index, which also includes dividends, but the negative evolution recorded in September, in line with the level reported by the international capital markets, made the top ten months of the year to enter the correction territory. In the last trading session in October, the BET-TR index registered a level of 21,000 points, down 9.1% this year. This evolution comes after the performance achieved in 2021, when the BET-TR index increased by 40%.

The evolution of the capital market in Romania has been internationally recognized by the global index provider FTSE Russell and, as of 2020, Romania has been promoted to Emerging Market status. Currently, 13 Romanian companies are included in emerging market indices, and among these companies there is also the BVB as an issuer, a company listed in 2010 on its own market.

Monthly report October 2022

5

News to investors

  • Banca Comerciala Romana (BCR), one of the most important financial groups in Romania, listed on October 12th a new issue of corporate bonds, worth RON 334mn, under the stock ticker BCR28C. This is the third bond listed by BCR at the Stock Exchange this year, and the total value of BCR bonds available for trading is over RON 4bn. BCR issued and sold to 10 bondholders a number of 668 corporate bonds with a nominal value of RON 500,000, a maturity date on October 6, 2028 and an interest fixed annual rate of 9,57%. The bond issue that enters trading on Wednesday is the 8th listed by BCR on the Stock Exchange and the third this year.
    Further details are available here.
  • Societatea Natională Nuclearelectrica (SNN), the sole producer of nuclear power and nuclear fuel using CANDU 6 type technology in Romania, company listed on the Bucharest Stock Exchange (BVB) since 2013, benefits starting October 21, 2022, from the issuer's marketmaking services provided by BRK Financial Group. SNN, with a capitalization of RON 12 bn, is one of the first companies whose shares were included in the FTSE Russell indices dedicated to emerging markets, FTSE Global All Cap, with the promotion of the Romanian capital market to emerging market status two years ago. Following the public announcement made in August by FTSE Russell, starting September 19, 2022, the company's shares moved from the Mid Cap to Large Cap category.
    Further details are available at this link.
  • Romcarbon (ROCE), a well-established name in the plastic processing industry, and one of
    Romania's biggest manufacturers of plastic packaging, is celebrating 70 years in business.
    Romcarbon was listed on the Bucharest Stock Exchange in 1997 and, as of 26 October 2022, the value of its capital stood at RON 110 mn. Romcarbon is recognized on the national and European market as one of the biggest manufacturers of plastic packaging and filter elements. Over the last decade, the company has invested in green industry and developed one of the most modern recycling facilities in Romania. The company is one of the biggest employers in Buzău county, employing around 900 workers.
    Further details are available at this link.
  • Bucharest Stock Exchange (BVB) and its partners in the Made in Romania program are running a roadshow between 3 and 24 November in Cluj-Napoca, Timișoara, Iași and Buchatest in order to promote to entrepreneurs solutions for further development of their companies in a period full of challenges for the whole business environment. Since the beginning of the program, 16 companies have come to the stock exchange with shares or bonds, and the rounds of financing carried out by them totals over 212 million euros.
    Further details are available at this link.

Monthly report October 2022

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Bucharest Stock Exchange published this content on 15 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2022 09:50:09 UTC.