Romania is above the capital markets in the region and very close to developed economies such as Italy, France or Spain, but below the European average and considerably below the global level, believes Alexandru Petrescu, president of the Financial Supervisory Authority (ASF).

“Romania is starting to be evaluated by the value it produces. The comparative data of the MSCI indices show an important change in the positioning of the Romanian capital market. With a ratio between price and book value of 2.02, Romania is above the markets in the region and very close to developed economies such as Italy, France or Spain. At the same time, the evaluation of the Romanian market remains below the European average and considerably below the global level,” Petrescu wrote on his Facebook page.

He says that the evolution of the capital market in Romania must be viewed together with the other fundamental indicators.

“The price-earnings ratio of 13.64, lower than that recorded by the main western markets, and the dividend yield of 3.39% suggest that the valuation of the main listed Romanian companies is supported by profitability and their ability to remunerate investors. Romania can no longer be described as a market constantly valued below book value, and this change reflects a new stage in the development of the Bucharest stock exchange”, explains the head of the ASF.

In his opinion, the current positioning is largely linked to the performance of companies in the banking and energy sectors, which have an important weight in the structure of the MSCI (Morgan Stanley Capital International) Romania index, according to Agerpres.

“Precisely for this reason, the indicators must be interpreted with balance, considering the concentration of the index in a relatively small number of issuers. They mainly describe the profile of the largest listed companies, without being able to be automatically extended to the entire Romanian economy”, says Alexandru Petrescu.

He claims, at the same time, that for our country, the stake of the next period exceeds the increase in stock market valuations.

“We need a deeper, more liquid and more diversified market, capable of transforming savings into investment and providing companies with resources for development. Trust is built through transparency, solid governance, investor protection and respected rules. The progress of the capital market must be consolidated with patience and responsibility, so that every good result today becomes the foundation of a stronger Romanian economy tomorrow”, concludes the president of ASF.