BET, the index of the 10 most-liquid shares on BVB, gained 28.7 percent in the past four weeks, and was equaled on the list of top European increases only by SOFIX, the main index of the Bulgarian capital market. As of tomorrow, companies listed on the local stock exchange will begin presenting financial results registered in the first quarter, and brokers expect the growth pace to slow in the coming weeks. “I expect to witness a slowing in the growth pace in mid-May, possibly some slight corrections, followed by stabilizing in the coming months,” said the Head of Equities Markets of ING Bank Romania, Florin Ilie. Banks registered far more moderate appreciations in April, compared to the SIFs, considering that the shares of BRD-SocGen and Erste Bank rose 9.7 percent and 5.2 percent, respectively.
Banca Transilvania shares had the best evolution in this sector, with a 17.2 percent rise. The lender was also one of the first listed companies which presented its Q1 financial results, with a profit slightly above RON 1 million, because of the high provisions set by the bank. “Financial results were below expectations. Revenues were based on financial operations which are not sustainable in the long-run, and provisions were about 50 percent above expectations,” Ilie added. The official said that there is a slight chance that investors will react strongly to the reports of the financial results of listed companies. A strong reaction is expected only in isolated cases, where Q1 data will by far exceed expectations.
