The blue chips forming the main index of the Bucharest Stock Exchange, BET, boasted an average profit margin of 22.7% in the first half of this year, which the market sees as “very good”, according to calculations of Ziarul Financiar daily.
The BET index has gained over 22% since the beginning of this year while the BET-TR index, which also includes the dividends paid by BET companies, recorded a return of 33%. The year-to-date performance came, however, on a low base created by the plunge prompted in late December by the government emergency decree OUG 114/2018 introducing new taxes on banks and other companies, which sent the BET index tumbling by 11% in only one day.
The 16 companies in the BET basket reported an aggregated turnover of about RON31.3bn (€6.6bn) in the first half of 2019, up 15.3% y/y. Their aggregated profit was RON7.1bn, up 39.3% y/y, according to the daily, based on the financial results reported by the companies.
“The first half earnings keep the issuers listed on the BSE in the category of attractive assets based on fundamental analysis. Economic growth is reflected, as expected, in the financial evolution of listed companies as well,” said analysts from local brokerage firm Prime Transaction.