The controversies related to the Government’s intentions to change the structure of the mandatory private pension funds (Pillar II) led to significant drops on the Bucharest Stock Exchange (BVB) in May.

The BET index, which follows the most important 13 companies listed on the local stock market, lost 7.3% of its value in May, leaving it with a gain of only 4.2% in the first five months of this year, according to BVB statistics.

“The robust market growth from earlier this year managed to keep the stock exchange in Bucharest in positive territory by the end of the first five months. The local capital market shows it lacks ‘depth’ as May brought a wave of both domestic and foreign uncertainties, which took by storm a local underdeveloped investors’ community. Therefore, it is our duty to do everything in our power to strengthen this community, especially for retail investors,” said BVB CEO Adrian Tanase.

Despite the drops in May, the Romanian market remained among the best-performing in the EU in terms of total gains, in the first five months. The BET-TR index, which reflects the total returns provided by the BET companies, including dividends, had a 6.5% growth in the first five months. The trading volumes also increased in the analyzed period, with the average daily turnover going over the EUR 10 million threshold.

Romania’s ruling party postpones decision on mandatory private pension funds

editor@romania-insider.com