The Bucharest Stock Exchange (BVB) announced on Monday that stock indices indicated sharp declines in September, sending most international equity markets into correction territory at the end of the first 9 months.
BVB explains that investors’ fears about rising interest rates and the possibility of a recession in developed markets gain momentum, according to a press release.
Total return indices, which also include dividends, ended the first 9 months with a double-digit dip: -10.5% for BET-TR in Romania, -11.7% for S&P500 in the USA, -18.2 % for the STOXX600 in Europe.
“In Romania, a better comparative evolution in relation to other international indices was possible after the BET-TR index reached a new all-time high in August’ said BVB
The investment activity intensified in September on the Bucharest Stock Exchange, with more than 140,000 transactions, the second-highest monthly value so far this year.
“The investors raised an important alarm signal in September in most international capital markets, not only in Romania. The return of volatility in the markets after a calmer level of trading in the summer months brings with it new trading opportunities,” said BVB’s President, Radu Hanga.
“Romania was more resilient than other developed capital markets in this complicated international context. We are witnessing a wave of negative data that has led to a deterioration in investment sentiment, especially after it became clear that central banks will raise interest rates, leading some investors to expect an economic slowdown,” added Hanga.
The CEO of BVB, Adrian Tanase expects volatility to manifest itself in the capital market in the last quarter of the year, but stated the level of amplitude cannot be estimated.
Tanase explained that for individual investors, the best strategy is to set a longer investment horizon, and for companies it is an opportunity to take advantage of the mechanisms made available by the capital market.