IMF deal heartens Romania's stock market, pushes most liquid companies up 3.6% on closing
Details on Romania's deal with the International Monetary Fund (IMF) brought back confidence on the Bucharest Stock Exchange (BSE), where the index of the ten most liquid companies hiked 3.6 percent and the financial sector advanced 3.15 percent, despite a weak evolution on external markets.
Liquidity surged 74.1 percent to 29.64 million lei (6.92 million euros) from 17.03 million lei in the previous session.
“The deal with the IMF raised investors' trust, especially following the statement of the central lender governor on the loan,” declared for NewsIn Marcel Murgoci, trading director at brokerage house Estinvest.
Romania will receive about 11.8 billion euros this year following the accord with the IMF and other lenders, and is mulling a gradual slight cut of the minimum mandatory reserves, the highest in the European Union, central bank's (BNR) governor Mugur Isarescu said.
He explained the loans granted by the European Investment Bank (EIB) were not included in the external financing package as the lender did not set the amounts according to the agreement with IMF. The country will secure a 19.95 billion euro loan from the IMF, European Commission, World Bank and EBRD.
The BET index of the ten best companies on the market grew 3.58 percent to 2,516.73 and the BET-C composite index assessing all listed shares without financial companies hiked 3.83 percent to 1,616.64.
The BET-FI index of the five financial companies or SIFs added 3.15 percent to 11,471.71 and the ROTX index for trading blue chips in Vienna gained 5.12 percent to 5,176.70.
The BET-XT index of the 25 most liquid stocks climbed 3.68 percent to 238.49 and the BET-NG index of the ten power companies on the capital market inched 0.90 percent to 364.75.
Stock markets in Europe were mixed at closing hour in Bucharest, as the utilities and oil sector dropped and offset the positive evolution on the mining sector.
The FTSE index in London decreased 0.29 percent to 3.889.01 while the DAX index in Frankfurt climbed 0.11 percent to 4,228.04. The CAC40 index in Paris lost 1.07 percent to 2,863.06.
Second Romanian lender by assets BRD SocGen (BRD) was the most liquid stock today and generated deals of 8.29 million lei, soaring 9.68 percent to 6.80 lei.
Oil company Petrom (SNP) appreciated 0.65 percent to 0.154 lei and lender Banca Transilvania (TLV) rose 4.68 percent to 0.895 lei.
Financial company SIF Moldova (SIF2) gained 3.86 percent to 0.457 lei, SIF Oltenia (SIF5) added 6 percent to 0.53 lei, SIF Banat-Crisana (SIF1) nudged up 3.03 percent to 0.51 lei, SIF Transilvania (SIF3) climbed 3.32 percent to 0.311 lei and SIF Muntenia (SIF4) went up 0.6 percent to 0.50 lei.
Fertilizer maker Azomures (AZO) jumped 14.84 percent to 0.209 lei and Erste Bank (EBS) surged 7.45 percent to 64.90 lei.