Romania’s BET Index Nears 20,000 Milestone, Capping a Historic Rally Amid Political and Economic Shifts

Bucharest, The Gulf Observer: The Bucharest Stock Exchange’s benchmark BET Index came within striking distance of the historic 20,000-point threshold on Tuesday, closing at 19,995.64 points after trading above the level for much of the day. This marked the first time the index has crossed that symbolic benchmark, reflecting a surge in investor confidence and market performance.

The BET index — which tracks the 20 most traded companies on the Romanian stock market — has gained an impressive 7.5% in just the past month, repeatedly setting new record highs. Its upward momentum began accelerating following the May 18 presidential runoff election, in which Romanian voters decisively endorsed a pro-European path. Since then, the index has surged nearly 20%, matching its year-to-date return.

This rapid growth comes despite the introduction of fiscal tightening measures by Prime Minister Ilie Bolojan’s new government. Although fiscal consolidation, including a VAT rate increase, raised concerns about reduced consumption and slower economic growth, the measures reassured markets by averting a potential sovereign credit downgrade and stabilizing government borrowing costs.

Blue-chip stocks such as gas transporter Transgaz (TGN) and industrial group Teraplast (TRP) led the rally, each soaring over 22% in the past month. They were followed by telecom giant Digi Communications (DIGI) with a 17% gain, and electricity supplier Electrica (EL) with nearly 15%. Other notable performers included Nuclearelectrica (SNN) and MedLife (M), both up about 12%.

Conversely, some of the index’s key players lagged behind. Energy producer Hidroelectrica (H2O), financial institution BRD, and oil and gas major OMV Petrom (SNP) delivered modest returns under 4% in the same period.

Historical Perspective

Launched on September 19, 1997, with a base value of 1,000 points, the BET index first breached the 10,000-point mark in July 2007, only to fall sharply during the global financial crisis, bottoming out below 2,000 points by February 2009. It regained the 10,000-point level in January 2020, briefly dipped during the onset of the COVID-19 pandemic, and firmly reestablished itself above that level in January 2021.

Now, four and a half years later, the BET has doubled in value, reflecting Romania’s improving capital market maturity, growing investor appetite, and relative macroeconomic stability.

With the 20,000-point milestone now within reach, analysts suggest that Romania’s stock market could attract increased attention from international investors—particularly as political clarity and fiscal discipline continue to anchor financial confidence.