December 12 (SeeNews) - Romanian stock indices rose on Monday following news of the Social Democratic Party's (PSD) victory in the general elections held the previous day, a local broker told SeeNews.
However, the advance was not entirely due to the outcome of the vote, which came as no surprise to anyone, equity trader and analyst at Prime Transaction Simion Tihon told SeeNews over the phone on Monday.
"Bucharest bourse's indices opened slightly up, but I do not think that the catalyst is the outcome of the elections. The advance of the opening is due primarily to the repricing of OMV Petrom shares, which have reacted quickly to the appreciation of oil prices in international markets following the agreement between the countries that are part of the Organization of the Petroleum Exporting Countries (OPEC) and the non-OPEC countries," Tihon commented.
According to the analyst, the market is likely to remain largely unperturbed in the following days, with liquidity likely to increase due to the comeback of investors who have stood on the sidelines, waiting to see what the outcome of the elections will be.
"We may have an increase in liquidity generated by the return to the market of those who waited for the outcome of the elections to make new transactions," Simion Tihon commented.
Almost all share indices of the Bucharest Stock Exchange (BVB), the biggest bourse in Southeastern Europe, gained ground in morning trading, with the blue-chip BET index adding 0.51% by 0830 a.m. CET. On Friday, the BET index closed 0.49% higher at 6,894.98 points.
The BET-FI, which tracks the country's five regional investment funds, the SIFs, dropped 0.36%.
The BET-NG, which includes ten companies from the energy sector and utilities, was up 0.9%, while the BET Plus, which is a free float market capitalization weighted index tracking 34 companies listed on BVB’s regulated market except the financial investment companies, was up 0.46%.
The BET-XT, which reflects the movements in the price of the most liquid 25 shares traded on the regulated market, including the SIFs, was up 0.51%. The BET-BK, a free float weighted capitalization index of the most liquid 25 companies listed on the regulated market rose 0.28% in morning trade.
On Saturday, OPEC and non-OPEC producers signed their first deal to cut crude oil production since 2001, which resulted in oil prices soaring 5% this morning. OMV Petrom shares were trading 2.55% higher at 0.2415 lei by 0921 CET on Monday.
PSD won 46.18% of the votes for the Chamber of Deputies and 45.77% of the ballots for the Senate in Sunday's general elections, followed by the right-wing National Liberal Party, PNL, which won 20.29% of the votes for the Chamber of Deputies and 20.41% for the Senate, preliminary results of the central electoral commission indicated on Monday. The centre-right Save Romania Union (USR) came in third, having won 8.87% of votes for the Chamber of Deputies and 8.82% for the Senate.
(1 euro = 4.4985 lei)