Berenberg's Hesse: MSCI's Romania Total Return index jumps over 150pct in 5 years in USD terms

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The share price performance of Romanian listed companies has been outstanding, as witnessed by the MSCI's Romania Total Return index which jumped more than 150pct over the last 5 years in USD terms, according to Carsten Hesse, EME Equity Strategist with Germany's Berenberg investment bank.

"Thanks to a very strong economic recovery and a booming private pension fund system, more and more companies started to list on the Bucharest Stock Exchange (BVB). The interest of international investors in Romanian stock listed companies has increased dramatically in particular towards the banking sector and Fondul Proprietatea which can also be witnessed in the trading volumes that have more than doubled since 2012. The recent IPOs, MedLife and DIGI, and larger capital market transactions have been very successful which is not surprising to us as investors are very keen on profiting from the strong economic growth outlook via investing in Romanian companies," Hesse is quoted as saying in a BVB press statement.

He is further quoted as saying regulation has improved, for instance how dividends are being distributed and red tape was cut to improve the speed and ease the burden to open a trading account for foreign institutional investor.

"Hopefully more capital market transaction will follow shortly to keep the strong momentum and interest by international investors into the Romanian equity market," the Berenberg expert added.

Renaissance Capital, a leading emerging markets investment bank, London-based brokerage company, shares a similar opinion.

"Romania's market has been one of the strongest performers year to date. A greater number of investors compared to two years ago are now aware of the market and trade Romania. We have also seen increased interest from our clients in getting educated about Romania in the past 12 months. The growing activity on the stock market comes from a going forward, healthy economic growth and dividend yields above the average for the region," says Renaissance Capital Global Head of Sales Trading Mark Reed. AGERPRES (RO — author: Florin Barbuta, editor: Oana Tilic; EN — author: Corneliu-Aurelian Colceriu, editor: Adina Panaitescu)

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