Romania’s stock market up 30 percent in two days

The shares of major companies listed on BVB increased close to the maximum 15 percent threshold, while financial investment companies (SIF) remained without sellers.

The quotation of BRD-Groupe Societe Generale, the second-largest lender on the local market, increased 14.7 percent, following the posting of outstanding profit.

Shares of Romania’s largest company, oil giant Petrom, rose 14.3 percent, while those of the second-largest oil company, Rompetrol Rafinare, increased 14.8 percent. SIFs also had their shares up 14.5 percent. In fact, most listed companies registered growth above 10 percent.

Nevertheless, brokers are cautious. “This growth means nothing. We have to see the impact on the real economy, because blockage of the banking system means blockage of economies,” said the Deputy General Manager of IFB Finwest, Octavian Molnar.

BRD shares were suspended early on Tuesday, before financial results were announced. The lender posted €285 million in net profit, 52 percent higher year-on-year. The results include funds from the sale of a 25 percent share in insurance company Asiban.

“The sound growth is due to the application of an adequate commercial policy, on both retail and corporate markets. Furthermore, the growth is carefully managed, based on the application principles to strictly observe risk on a relatively difficult market,” BRD-SocGen’s President and General Manager Patrick Gelin said.