Renaissance Capital a greater number of investors compared to two years ago are now aware of the market and trade Romania and increased interest from its clients in getting educated about Romania.
Foreign investors have greatly upshifted perception on Romania’s equity market, which is on the edge to be upgraded to emerging market status, according to a statement by the Bucharest Stock Exchange (BVB).
“The share price performance of Romanian listed companies has been outstanding, as witnessed by the MSCI’s Romania Total Return index which jumped more than 150 percent over the last 5 years in USD terms. Thanks to a very strong economic recovery and a booming private pension fund system more and more companies started to list on the BVB,” said Carsten Hesse, EME equity strategist at the German investment bank Berenberg.
“Romania’s market has been one of the strongest performers year to date. We have also seen increased interest from our clients in getting educated about Romania in the past 12 months. The growing activity on the stock market comes from a going forward, healthy economic growth and dividend yields above the average for the region,” said Mark Reed, global head of sales trading at Renaissance Capital.
„The recent IPOs, MedLife and DIGI, and larger capital market transactions have been very successful which is not surprising to us as investors are very keen on profiting from the strong economic growth outlook via investing in Romanian companies,” added Hesse.