Bucharest Stock Exchange’s July success

UniCredit Bank S.A.
Mon, 25/09/2023

Hidroelectrica makes its debut in a victorious manner                                                                                                                                                                                                                                            

In July, the Bucharest Stock Exchange experienced its most successful month of the year thus far. The indices showed consistent growth, and the transaction value significantly increased, primarily due to the successful completion of the Hidroelectrica offer. This operation was the largest of its kind in the history of the Romanian market, and it coincided with the commencement of trading for shares of the electricity producer and supplier.

The BET index, which reflects the performance of the 20 most liquid shares on the BSE, saw a significant increase of nearly 6%, reaching 13,227 points. Additionally, the BET-BK index, considered the benchmark for yield among investment funds focused on shares, grew by 5.5%, reaching 2,478 points.

The BET-XT index, tracking the performance of the 30 most liquid shares in our market, experienced a notable increase of 5.4%, reaching 1,143 points. Simultaneously, the BET-NG index, which comprises energy and utility companies, saw a gain of 4%, reaching 997 points.

The positive trajectory was observed in the broader international context, which favored stock markets. This momentum was further bolstered by the heavily oversubscribed Hidroelectrica offering, along with other factors like financial results and dividend proposals.

Hidroelectrica made its debut on the Bucharest Stock Exchange on July 12th, concluding its first day of trading at a price of 110 lei. This marked a 5.7% increase from the closing price of the public offering, which was set at 104 lei. Notably, the total transaction value reached 760 million lei (approximately 153.5 million euros), significantly surpassing the typical trading volumes in the Romanian market.