BSE companies welcome 6.5% growth

Results reported by stock exchange companies at the end of last week revealed the first overall rise in turnovers in the first quarter, compared with the corresponding period of 2009, after several quarters of marked decline.

“Optimism was the mot d’ordre in companies’ budgets this year, especially as far as domestic consumption is concerned, which will be under pressure from budgetary adjustments,” says Mihai Caruntu, head of BCR’s capital market analysis department.

The cumulated turnovers of 74 listed companies rose by 6.5%, to 9.4 billion RON (2.3 billion euros), according to ZF statistics. In the last quarter of 2009, the cumulated business of stock exchange companies had fallen by 28%, with the exception of Petrom, which saw a 9.5% drop.

However, more than half the companies still witnessed turnover declines, with small businesses being particularly hurt. Very few companies boosted their profits, with growth occurring mainly in less competitive sectors – utilities, petroleum, and gas.

Petrom’s profit more than doubled in the first quarter, to 807 million RON (196.1 million euros), whereas turnover went up 2% to 3.9 billion RON (956 million euros).