Investing in Romania

Romania is an EU member country, which has experienced positive foreign direct investment and GDP growth following privatization initiatives over the last decade. It has an upper-middle income economy strong in its industrial and agricultural sectors. 

Romania Main Industries

 

Romania’s Main Stock Exchanges

The two main stock exchanges in Romania by size are:

1. Bucharest Stock Exchange

It was founded in 1882 and has merged with Romania’s OTC exchange (RASDAQ) in 2005.

The principle securities traded on this exchange include:

  1. Equities
  2. Government and Corporate debt
  3. Fund units
  4. Structured products

 

2. SIBEX

It is Romania’s second largest exchange, and is designed for trading in derivative securities such as futures and options on

  1. Stocks and indexes
  2. Currencies
  3. Interest rates
  4. Commodities such as gold

 

Glimpse into Romania’s Equity Market

Romania’s major index is the BET, which is composed of Romania’s 10 largest listed companies.

Romanian equities yielded positive returns of 16% during the last year, and have performed solidly relative to other European equities.

Market cap of listed equities increased 7% from $US 30.3 billion in 2009 to $US 32.3 billion in 2010.

Stock Index Performance: BET 20

Romania stock index performance

 

Romania’s 10 Most Profitable Companies

Romania 10 most profitable companies 

 

Ways to Invest in Romania

There are a couple of different ways to invest in Romanian companies:

1. Through a bank in Romania

  1. Banca Tanssilvania
  2. Romanian International Bank
  3. CEC Bank
  4. Alpha Bank
  5. ABN Amro
  6. Raiffeisen Bank
  7. Citibank Romania
  8. Libra Bank

2. ETFs

ESR:NYSEArce – It is an emerging markets ETF with high exposure to Eastern Europe