The surprise in the first round of the presidential elections makes BVB red

The surprise in the first round of the presidential elections, won by the independent Călin Georgescu, after which the USR candidate, Elena Lasconi, came in second, brought declines for all indices of the Bucharest Stock Exchange (BVB).

The BET index, of the twenty most liquid stocks on our market, had a 0.89% decline yesterday, to 16,982 points, while the BET-BK index, the benchmark for the performance of equity investment funds, depreciated by 1.67%, to 3,125 points, on a day when European markets were mostly growing, which shows that the decline on the BVB has internal causes.

• Dochia: "We will have two more rounds of elections, which are much more important"

Economic analyst Aurelian Dochia described yesterday's market reaction as "emotional", especially since parliamentary elections are coming up, after which the new Government will be appointed.

He told us: "The market reaction always contains an emotional component and I am convinced that today's movements will stabilize in the coming days. It is obvious that the results are a big surprise for everyone. And investors reacted without having a clear information base to justify their reaction. It is an emotional reaction and I do not think we should give it exaggerated importance, but let's wait and see how things stabilize in the coming days".

The analyst added: "We will have two more elections that are much more important, especially since the parliamentary elections determine the structure of the new Government for the next four years, which has responsibilities in the economic field. According to the Constitution, the President does not have direct responsibilities in the economic field, but obviously he can give a certain direction through what he transmits to the Government".

The Financial Times describes Călin Georgescu as a far-right, pro-Putin politician, a former honorary member of the ultranationalist AUR party, who won votes based on viral campaigns on TikTok. Georgescu has criticized Romania's membership of NATO and the fact that the alliance has military bases on the country's territory, including the United States' missile defense system, arguing that this indicates a confrontation with Russia, which is waging a war in neighboring Ukraine.

• Murgoci: "Parliamentary elections matter as much as presidential elections, because the Government is responsible for the country's economic policy"

Marcel Murgoci, the operations director of the brokerage house Estinvest, believes that the result of the first round of the presidential elections increases uncertainty about the outcome of the parliamentary elections, which will take place on December 1.

"We have a negative reaction in the market as a result of the surprising results of the first round of the presidential elections. I think that in the perception of investors, these results bring a certain uncertainty related to the parliamentary elections, which matter as much as the presidential ones, especially since the Government is responsible for the country's economic policy, along with other authorized institutions," the director of Estinvest told us.

The broker added: "It is an emotional reaction and probably, depending on how things evolve, there will be more such reactions in the coming days and weeks, because there are two more elections coming up, which may have an impact on the capital market. It is normal for this to happen, because those who will lead us, establish economic policies, those related to defense, etc. are being elected. We have been drawing attention for some time now that the elections will bring volatility to the market. For now, it is a first result, and things are evolving, so I still expect volatility, which may be positive, not just negative, depending on how the negotiations that will follow and the results of the elections are perceived by investors".

• All BVB indices ended the day in negative territory

On the Bucharest Stock Exchange, the BET-NG index, of energy and utility companies, fell by 0.38%, to 1,209 points, while the BET-FI index, of former SIFs plus Fondul Proprietatea, fell by 1.17%, to 59,911 points.

The value of transactions was 89.5 million lei, below the daily average of the year, of 142 million lei, an amount that is nevertheless massively pushed up by the offers of Fidelis government bonds.

In the "regular" market, the top transactions were led by the exchanges of Banca Transilvania (TLV) shares, which amounted to 25.7 million lei, with TLV shares ending the day down by 0.18%, at the price of 28.15 lei.

In second place in the liquidity ranking were Hidroelectrica (H2O) shares, which stagnated at 120 lei, with a turnover of 11.8 million lei.

OMV Petrom (SNP) shares depreciated by 0.14%, at 0.7335 lei, with a transaction value of 10.1 million lei.

In fourth place in the turnover ranking were Romgaz (SNG) shares, which accumulated a turnover of 4.4 million lei, with SNG shares ending the day up 0.94%, at a unit price of 5.35 lei.

No trades took place in the "deals" market.

The BETPlus composite index fell by 0.91%, to 2,513 points, while the BETAeRO index, of companies considered relevant for the Multilateral Trading System, depreciated by 0.66%, to 905 points, with all BVB indices ending the day in negative territory.

Călin Georgescu and Elena Lasconi will face off on December 8th in the second round of the presidential elections in our country.