Capital Market developments in the first 9 months of 2023

Bucharest, 5 February 2024 – The local capital market recorded positive developments in the first nine months of 2023, with the total value traded on the regulated market of the Bucharest Stock Exchange (BVB) and on the Multilateral Trading Facility (MTF) reaching RON 26.79 billion, up by almost 50% compared to the same period last year.

The number of trades on BVB - on the regulated market and MTF - amounted to 1.4 million in the first nine months of 2023 and increased by about 5% compared to the same period last year. For the same period, the market capitalization on the regulated market reached RON 275.27 billion, up by about 40% compared to the end of 2022.

Romanian stock market indices recorded positive developments at the end of September 2023 compared to the end of the year. The BET benchmark index (which includes the developments of the most traded companies on the regulated market of BVB) had an increase of 22.93% at 30 September 2023 compared to the end of 2022.

In the first nine months of 2023, the value of transactions in government securities decreased compared to the same period of 2022, recording a level of about RON 1.65 billion. Equities remain the dominant financial asset class, accounting for 74% of the total value traded on BVB by the end of the third quarter of 2023.

At the end of September 2023, a total of 28 intermediaries were active on the regulated market administered by BVB, including 18 Financial Investment Services Companies (FISCs), 3 local credit institutions and 7 entities authorised in other EU Member States. A total of 22 intermediaries were also active on the MTF, including 17 Financial Investment Services Companies (FISCs), 3 local credit institutions and 2 entities authorised in other EU Member States.

During the reference period, the most active intermediaries on BVB (regulated market and MTF) were the FISCs, the value brokered by them being approximately RON 21.9 billion.  Local intermediaries (FISCs and credit institutions) accounted for about 92% of the total value brokered. Of the intermediaries authorised in other EU Member States that traded on the spot markets, the most active were investment firms, with a market share of 5.15%.

At the end of September 2023, FISCs had in custody a cumulative value of assets of RON 28 billion, representing both clients' liquid assets and financial securities held by them. The cumulative number of active client accounts of FISCs at the end of the first three quarters of 2023 was 65,779.

The total value of assets of Collective Investment Undertakings (CIUs) in Romania as of 30 September 2023 was approximately RON 36.8 billion, down by 13.15% compared to the end of the second quarter of 2023 and by 13.41% compared to the end of 2022. At that date, 17 managers were operating in Romania, of which 6 were exclusively authorised as Investment Management Companies (IMCs), 2 were exclusively authorised as alternative investment fund managers (AIFMs), and 9 had dual authorisation. In addition, as of 30 September 2023, 92 Undertakings for Collective Investment in Transferable Securities (UCITS), 35 Alternative Investment Funds (AIFs) including the 6 Investment Companies (IC) and Fondul Proprietatea were authorised. Depository services for the 127 CIUs were provided by 4 depositaries.

An analysis by category of collective investment undertaking shows that in the third quarter of 2023, compared to the previous quarter, there were decreases in total assets for PF (59%) and increases in total assets for UCITS (4.3%), AIFs (4.9) and FICs (12.4%).

As at 30 September 2023, the first three IMCs/AIFMs managed approximately 71.6% of UCITS assets and 64.6% of AIF assets. The net assets of the six ICs amounted to approximately RON 12.68 billion, up from RON 11.32 billion at the end of the previous quarter and RON 10.69 billion at the end of 2022.

The report on the Romanian capital market developments in the first 9 months of 2023 can be found HERE (in Romanian).