The most important indices of the Bucharest Stock Exchange (BSE) registered new 5-year high Wednesday at noon and continued the favourable trend of the last week.
The evolution of the Bucharest Stock Exchange is in line with the global markets, especially the European ones, which reach new highs.
BET index, the reference index for BSE, exceeded Wednesday the psychological threshold of 8,000 points, continuing the series of 5-year highs registered these days.
BET increased Wednesday at 12:35 by 1.13% over the previous day’s closing, up to 8,003 points, and by 12.9% compared to early this year.
BET index reflects the average of variation in the 10 most traded and liquid stocks listed on the BSE (except for the financial investment companies – SIF).
BET did not reach a level above 8,000 points since 18 January 2008 (8,324 points), but back then the market already started a downward spiral correcting the historical highs registered in July 2007 and was going to plunge the following year because of the crisis. The index will have closed 2008 at 2,901 points.
In turn, BET XT index of the most traded 25 companies on BSE (including SIFs) has surpassed its own record of the past five years and exceeded the threshold of 700 points, following an increase of nearly 1% up to 719 points.
Liquidity
The soundness of the growth trend of this year is reinforced by the above-average liquidity of the market. The daily average value of transactions exceeded the average of the last year (EUR 8.1 million) in half of the trading sessions of 2017.
Moreover, in 10 trading sessions of this year, the liquidity was over EUR 10 million, the threshold established in the brokers’ community as a profitability benchmark.
The liquidity threshold of EUR 10 million has been reached and surpassed in just four years of the 22-year existence of the BSE: the glory years of 2006 and 2007 before the crisis (on July 24, there have been reached the historical highs of the BSE indexes) and in 2013 and 2014, when the hopes of overcoming the crisis have received the confirmation from the market.
