Prime Transaction: "Important increases for shares in BET-BK, in the last quarter of last year"

The last quarter of last year was, again, very good for the capital markets, and our country's was also at the top of the ranking this time. The BET-BK index appreciated by 12.48% in dollars, in the same area as the German DAX index and the American S&P 500 index, but slightly lower than the BUX index, of the Budapest Stock Exchange, according to the company's latest analysis report of Prime Transaction brokerage.

"Over the past twelve months the local market position is even better, with an increase of around 35% in dollar terms for both the BET-BK index and the main BET index. It is the fifth largest increase among capital markets in Europe, after those of Cyprus, Hungary, Poland and Greece", the attached report also states.

• Fondul Proprietatea - the best yield in BET-BK, on a quarterly basis

At the Bucharest Stock Exchange (BVB), the top returns in the BET-BK index were led by Fondul Proprietatea (FP), with an increase of 24.52% on a quarterly basis, due entirely to the increase in the share price, given that in during the analyzed quarter there were no distributions of dividends or free shares.

"The yield was determined, to a large extent, by the approval of the public offer for the purchase of own shares at the price of 0.6319 lei/share, about 50% above the market price from the moment of obtaining ASF approval", the Prime report states.

According to analysts, another important event that helped to increase the price of FP shares was the announcement regarding the sale of the stake in Engie Romania, for around 87 million euros.

• Sphera and Transport Trade Services - over 20% returns

Sphera Franchise Group (SFG) and Transport Trade Services (TTS) completed the top three positions of the BET-BK index evolution ranking, both with quarterly returns greater than 20%, according to Prime. Sphera shares returned 24.15% in the fourth quarter, even though for the third quarter the company reported weaker financial results than in the same period in 2022.

"One possible reason is the positive expectations for the last quarter of of the year, when group sales typically reach year-to-date highs," the report said.

Transport Trade Services (TTS) remains on the positive trend determined by the reconfiguration of logistics chains at the regional level, in the context of the war in Ukraine, both from the point of view of financial results and that of the stock market evolution. The carrier had the second-highest return in the BET-BK index in 2023 and the highest among the issuers that were part of the index at the start of the year, more than 140%. In the fourth quarter, TTS securities returned 23.29%.

• MedLife - the weakest performance in BET-BK

Conversely, MedLife ( M ) was the worst performer in the BET-BK, with a negative return of 12.53% in the fourth quarter. "The medical operator continued to report poor financial results, but it is possible that it has reached an inflection point from this point of view," the Prime report maintains.

Overall, corporate financial results did not influence stock market developments as much as in previous periods, with the highest-yielding issuers having several that were helped more by news or expectations than by earnings reported during the quarter, according to the analysis of the brokerage house, from the attached report.