The top shares traded on the Bucharest Stock Exchange (BVB) returned an average 14.5% in 2014, the 2013 dividend included, according to BVB data. This is almost four times more than the average interest rate for bank deposits in local currency (RON) paid by Romanian banks in 2014, which was under 4%.

The performance of the top 10 shares listed on the Bucharest Stock Exchange is measured by the BET index. The BET increased by 9% in 2014, but the newly launched BET Total Return index (BET-TR) which also includes the dividends paid by the BET companies, increased by 14.5%, the BVB announced.

“With a market capitalization of approximately RON 26 billion (EUR 5.8 bln), BET-TR tracks the price changes of its component shares and is adjusted to also reflect the dividends paid by constituent companies. In 2014, 6 member companies of BET-TR paid dividends from the previous year profits, resulting in an average dividend yield of approximately 9%,” BVB said in a statement.

Electricity transport company Transelectrica (BVB ticker: TEL) was the BET’s best performer, with 100% return, dividends included. Gas transporter Transgaz (TGN) returned 51% and Banca Transilvania (TLV), the third largest bank in Romania, ended the year up 34% compared to end-2013. However, other BET constituents, such as oil and gas producer OMV Petrom (SNP) and electricity producer Nuclearelectrica (SEN) had negative returns, although they paid dividends for 2013.

Blue chip shares remain an attractive investment opportunity for 2014, local analysts say, as dividend yields offered by some of these companies are significantly higher than interest rates on bank deposits. State-owned energy companies such as Transelectrica, Transgaz, gas producer Romgaz and electricity distributor Electrica are expected to pay dividends representing more than 5% of their current share prices, according to an analysis by local brokerage firm Prime Transaction.

Meanwhile, interest rates have for deposits have fallen under 3%, as Romania’s central bank last week cut the monetary policy rate to a new minimum of 2.5%.

Andrei Chirileasa, andrei@romania-insider.com