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Bucharest stock indices bounce back after global market turmoil

Bucharest stock indices bounce back after global market turmoil Bucharest Stock Exchange (Author: BVB) License: all rights reserved.

BUCHAREST (Romania), February 7 (SeeNews) - Bucharest stock indices recovered on Wednesday after global markets sell-off, Bucharest Stock Exchange (BVB) data showed.

In the U.S., the Dow Jones Industrial Average index plunged 4.60% to close at 24,345 points on Monday on concerns of faster inflation and higher interest rates. Selling spread to Asian and European markets on Tuesday.

The total equity turnover of the BVB fell to 30.4 million lei ($8 million/6.5 million euro) on Wednesday from 76.3 million lei on Tuesday.

Lender Banca Transilvania [BSE:TLV] was trading 0.66% lower to 2.25 lei in the day’s largest turnover of 6.99 million lei.

Lender BRD Societe Generale [BSE: BRD] gained 0.94% to 12.9 lei in the day's second largest turnover of  5.51 million lei.

Natural gas producer Romgaz [BSE: SNG] climbed 0.61% to 33 lei in the day's third largest turnover of 4.37 million lei.

"Given the rapidity with which markets have descended over the past few days, we do not rule out the possibility that the current corrective episode may expand in duration, but not necessarily in scale. For the BET index, for example, an important price support is visible only below, at 7.830 (a relevant Fibonacci level), or, in a slightly more negative scenario, at 7.680. Until then, the declining rhythm should slow down gradually and market volatility should diminish," Banca Transilvania financial Research Team commented for SeeNews on Tuesday.

As on upward trends, any correction is a good moment to enter the market, Banca Transilvania analysts believe that the current negative reaction is a good opportunity for acquisitions, especially since the reporting season that is just beginning is announcing to be one with mostly positive financial results.

Also on Tuesday, a Romanian stock broker told SeeNews that the response of the Bucharest bourse to the slump on Wall Street shows that there is no panic among investors but warned that the market remains unpredictable. "I think that the local market has responded in an excellent way given the international context. A drop of only 2%-3% at this hour shows that there is no panic yet among investors. It could have been worse," Simion Tihon, equity trader and analyst at Prime Transaction, told SeeNews in an e-mailed statement.

At the moment, given the voltage in the market, anything can happen, Tihon added. He noted that this is a good time for investors to analyze their portfolio and have a stock/cash ratio according to their own risk profile.

Details follow:

Index Closing Value Daily Change
BET 8,014.29 0.09%
BET-TR 10,778.04 0.09%
BET-FI 40,808.08 -0.62%
BETPlus 1,201.99 0.09%
BET-NG 679.72 -0.02%
BET-XT 759.33 0.00%
BET-XT-TR 1, 039 .33 0.01%
BET-BK 1,711.63 0.53%
ROTX 16,454.70 0.04%

BET Total Return index (BET-TR) is a free float weighted index of the 13 most traded companies listed on the regulated market and is adjusted to also reflect the dividends paid by constituent companies. 

BET-BK is a free float weighted capitalization index of the most liquid 25 companies listed on the regulated market. 

BET Plus is a free float market capitalization weighted index tracking 34 companies listed on BVB’s regulated market except the financial investment companies, that meet the minimum eligibility criteria, which refer to liquidity and the value of shares in free float.      

BET-FI tracks the SIFs and property restitution fund Fondul Proprietatea. 

BET-NG includes companies from the energy sector and utilities.

BET-XT is a blue chip index and reflects the price evolution of the most liquid 25 shares traded on the regulated market, including the SIFs. 

BET-XT-TR reflects the price performance of the top 25 most traded Romanian companies, as well as their gross dividends and cash distributions. 

ROTX tracks Romania's nine most liquid stocks. It is a joint index of the Bucharest bourse and the Vienna Stock Exchange.

(1 euro = 4.6423 lei)

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