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Romania's blue-chip index BET hits six-month low after fiscal overhaul

Romania's blue-chip index BET hits six-month low after fiscal overhaul Bucharest Stock Exchange (BVB)

BUCHAREST (Romania), December 19 (SeeNews) - The blue-chip BET index of the Bucharest Stock Exchange [BSE:BVB] dropped by 7.5% in morning trade on Wednesday following a massive fiscal overhaul announced by finance minister Eugen Teodorovici.

The BET Plus index, which includes 34 regulated market-listed companies that meet minimum selection criteria of liquidity and free float, dived 7.35% in morning trade, sock exchange data showed. At 1234 CET, BET was 10.50% lower, as the top decliners on the bourse were Banca Transilvania with 21.02% loss, BRD Societe Generale with a decline of 14.97% and petrochemical company Oltchim [BSE:OLT] which traded 14.89% lower. Equity turnover on the Bucharest bourse stood at 935 million lei ($230 million/209 million euro) by that hour.

The Bucharest Stock Exchange (BVB) has taken note of the negative effects reflected in major downfalls of the stock market indices as a result of the recently announced government emergency decree, it said  in a press release on Wednesday.

"The investors are paying special attention to the actions of policy makers that influence the economic environment and the evolution of listed companies, a major aspect of the investment process being given by predictability and legislative stability," the BVB said.

Romania's finance minister Eugen Teodorovici told a press conference on Tuesday evening that the Social Democrat government will approve an emergency decree on an ample fiscal overhaul that proposes, among others, a 'greed tax' for banks, capping gas prices, as well the enforcement of new rules for private pension funds.

(1 euro=4.6571 lei)