The total net profits of the companies listed on the Bucharest Stock Exchange that have revealed their preliminary financial results so far increased by 23% in RON last year. At the same time, the turnover witnessed a similar trend, according to the BSE centralised data. The profit growth in euros also reached a figure of almost 27%.
The statistics do not include the results of Petrom and BRD Groupe Societe Generale, the top two largest companies on the Bucharest Stock Exchange, which have not revealed their preliminary financial results for 2006.
The total value of the profits reported by the companies on the Stock Exchange, of which the losses of non-profitable companies were subtracted, amounted to about 1.18 billion RON (335 million euros), compared with 960 million RON (265 million euros) in 2005. The total turnover of the companies analysed increased to 19.55 billion RON (5.55 billion euros), from 15.84 billion RON (4.37 billion euros) in 2005.
"An average growth rate of 23% for the business and profits of companies on the Stock Exchange is very good and indicates the Romanian economy is doing well and that most of the companies listed on the Stock Exchange are premium companies," believes Razvan Pasol, chairman of brokerage company Intercapital Invest.
"Another encouraging aspect shown by these statistics is that the profit margin of the companies listed maintained, which is good for an emerging economy like that of Romania," Pasol added.
The average profit margin of the companies on the Bucharest Stock Exchange amounted to 6.03% last year, compared with 6.06% in 2005.
The capital market anticipated the trend of the results of the listed companies. The BET-C index that gauges the performance of all the companies on the Bucharest Stock Exchange, except the SIFs, increased by 28.5% in 2006. The BET index, which gauges the
