Pre-Covid Investments. How much money would you have today if you placed 100 lei in the stock market in 2019. “The local stock market had a spectacular growth.”
Platform_enrollment-investors-BVB, Photo: Hotnews
An investor who placed 100 lei in 20 blue chip companies of the Bucharest Stock Exchange, at the beginning of 2019, would have had around 500 lei today.
From February 2019 to date, BET-TR has grown approximately fivefold. The yield simulation assumes a portfolio built according to the weights of each company in the index.
“What we clearly observe is that the local stock market has seen spectacular growth during this period, and the pace of advance has steadily accelerated,” Prime Transaction analysts note for Termene Business Hub.
In order to visualize the level of appreciation on the Romanian stock market, Prime Transaction used a total return index (BET-TR), as it accounts not only for the evolution of trading rates, but also the additional return obtained from profit distributions to shareholders, in the form of dividends.
Investors could have obtained higher returns if, in the same period, they had placed more money in companies such as MedLife, Antibiotice, Romgaz or Transgaz, or lower if they had placed it in companies such as TeraPlast, BRD or Purcari. Obviously, this is not a recipe for future success, as past returns do not guarantee future returns.
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