Bucharest Stock Exchange BET index undergoes significant correction

The Bucharest Stock Exchange (BVB) is undergoing a significant market correction following a strong summer rally. The main BET index fell by 3.07% on September 16, reaching 31,693.28 points. This decline follows a peak on August 19 when the index stood at 36,487.21 points, representing a total drop of approximately 13.1% in less than a month.

This downward trend is not limited to the primary index; other indicators, including BET-TR, BETPlus, and BET-XT, have also recorded losses as selling pressure intensifies. The correction follows a period of rapid expansion where the market was approaching a 50% annual growth milestone.

Market analysts attribute the volatility to a combination of local political uncertainty in Romania and external global pressures. These external factors include escalating conflicts in the Middle East, rising oil prices, and shifting expectations regarding interest rate decisions by major central banks, such as the US Federal Reserve and the European Central Bank. Additionally, rising yields on government bonds in developed economies have contributed to the pressure on equity markets.