>>>Stock exchanges from Warsaw and Bucharest reaped the biggest gains in Europe amongst significant exchanges with over EUR 1 billion in turnover for equities: Poland grew by 35%, Romania up by 31%
By Emea Riga
Investors have increased trading activity in Eastern Europe lured by two-digit gains reported by significant stock exchanges with over EUR 1 billion in turnover for equities, most notably from Poland and Romania. Stock exchanges from Warsaw and Bucharest led growth in Europe as equities turnover went up by over 30 percent after the first nine months this year, according to an analysis carried out by PARKIET, a Polish daily financial newspaper dedicated to investors, based on the Federation of European Securities Exchanges (FESE) data.
The turnover for equities increased by 35.6% at the end of the first nine months this year in Poland, the only Central and Eastern European (CEE) market that has been recently reclassified by FTSE Russell to Developed Market, as compared to the same period from last year. Romania, which is a Frontier Market, followed suit and reported a growth of 31.5% in the turnover for equities. PARKIET data read that Poland and Romania had a growth rate that largely outpaced the evolution of other capital markets that also posted a two-digit growth such as Austria (+18.8%), Hungary (13.7%) or Switzerland (+11.4%). On the other side, growth has not spread across all Europe leaving the stock exchange in Prague with a 7.1% decline in the first three quarters.
"Other stock exchanges can envy such an increase. The only stock exchange that can keep up with the Polish Exchange is the Bucharest Stock Exchange," reads the article in PARKIET, a reputable Polish daily covering capital markets since 1994.
Investors on Bucharest Stock Exchange (BVB) have traded more shares this year, bringing the total trading value of equities to over EUR 1.8 billion by the end of September 2017. It is a nearly one-third increase as compared to the first three quarters of last year when the equities turnover totaled some EUR 1.4 billion.
Romania was one of the stars in terms of the value of the initial public offers (IPOs) that took place in Europe in the first 9 months this year. Warsaw Stock Exchange took the first place in both number and value of IPOs, followed by Bucharest Stock Exchange with two IPOs - DIGI Communications and AAGES – with a cumulated value of EUR 208 million. The Romanian capital market was even more attractive for corporate bonds issuances, which totaled some EUR 822 million. Therefore, at the end of the first nine months, the value of IPOs and corporate bonds listed on BVB exceeded EUR 1 billion.
When it comes to market capitalization, the value of companies listed on BVB also went up vigorously from EUR 31 billion at the end of the first three quarters of 2016 to around EUR 35.4 billion following the first nine months of this year, which corresponds to an increase of 14.2%.
In all three dimensions: the growth rate of equities turnover, the value of the IPOs and the increase in the market capitalization, the Romanian capital market solidifies a regional leading position, second only to Poland, the newly reclassified country to Developed Market in the region.