CONTEXT

• In a year when the noise of the elections covers the serious economic issues that concern the business environment, not only in Romania, but also in many Western countries, Profit.ro brings into debate the challenges of financing through the capital markets, organizing PROFIT PIAȚA DE CAPITAL.forum, reached its 4th edition this year.
• After a remarkable 2023 for the stock market, with an advance of over 30%, with a yield among the highest in Europe, and with the largest listing in the history of the country, that of Hidroelectrica, 2024 did not start badly at all. The market’s main index, BET, has successively climbed to record highs, advancing more than 10% since the start of the year and more than 50% over the past 12 months.
• We have the third largest market in the region, but we are unfortunately not as good with liquidity. The boom in new listings, after the signal given by Hidroelectrica, is still to be expected, although the market has started to move.
• The economy expects much more from the capital market than new historical highs at the level of quotations. The need for financing through alternative means to banking has increased, especially in the context of tightening credit conditions and rising interest rates.
• The capital market has not yet become a viable option for financing small and medium-sized businesses in Romania, it remains undersized and does not advance at the desired pace in terms of listings. Over the past 15 years, 45 companies have delisted from the BSE main market, three times the number of listings.
• Trading activity remains low, especially on the AeRO segment, with liquidity dominated by a few companies, and the share of stock market capitalization in GDP remains well below the EU average, given that the level in Europe is not too close to that of over the ocean.
• Things to be solved also remain in the operation of the derivatives market, which helps investors to cover their risks, but also to gain the confidence of retail investors.
• The macroeconomic, fiscal, social and geopolitical framework within which these challenges come is far from straightforward either, with elections in several waves and armed conflicts near borders and in the Middle East continuing to affect markets.

THEMES FOR DEBATE:

• What growth prospects does stock market liquidity have?
• >How we unfreeze the listings market. What new IPOs are expected, including from state-owned companies?
• Lessons from the experience of listed companies.
• Perspectives for retail investors. What can attract the population to place their money in the capital market.
• Needs to increase the transparency of the stock exchange and listed companies. Challenges for the secondary market, where liquidity is especially low.
• How easy is the access of foreign investors to Romanian shares?
• At what stage and what realistic expectations are there still for the creation of a union of European capital markets?
• What regulatory changes are expected from the ASF?
• Capital solutions and know-how for future regional industrial champions.
• Fiscal challenges for the capital market.
• What is the status of the Central Counterparty project and the chances of operationalization this year. Impact for the stock market.
• Outlook for capital markets in the context of the expectation of interest rate cuts by central banks.
• Challenges for pension funds.
• What investment opportunities do pension funds have, what measures and solutions are needed for exposure limits.
• Perspectives for venture capital funds.
• Funding solutions for startups through the capital market.
• How the trading of government securities evolves on the stock exchange.
• How can the corporate bond market become more active than it is now.
• The need for financial education for the capital market. What are the dysfunctional areas.
• Communicating with investors: gaps, challenges and solutions.
• Prospect of BVB promotion to emerging market state by MCSI.
• What will the derivatives market look like and what liquidity will we be able to rely on in the coming years?
• How do international tensions affect the Romanian capital market? What internal measures can mitigate the problems?

Event broadcast LIVE on Profit News TV, www.profit.ro and facebook.com/profit.ro