Leu of the land
Romania’s stock market is small, unfashionable and, over the past decade, the best-performing in the world. Almost no Romanians own a share. There is, of course, no such thing as free money, but investors on Romania’s stock exchange might argue that they are currently on to the next best thing. Earlier this month, Divo Pulitika, […] Leu of the land was originally published on Emerging Europe .
Romania's stock market, despite being small and less fashionable, has proven to be one of the world's best performers over the last decade. The majority of Romanians have not invested in the market, but those who have seem to be reaping significant rewards. The main stock index of Bucharest exchange recorded a total return of 758 percent over the past ten years, with dividends reinvested, surpassing both Taiwan and the Nasdaq 100.
The exchange's valuation stands at about 11 times earnings, while its dividend yield is around 4.4 percent. In 2025, the BET index, tracking the most liquid stocks on the Bucharest exchange, rose by 49 percent year-on-year, while the dividend-inclusive version gained 55 percent. The combined value of Romanian-listed companies reached 100 billion euros for the first time.
The market's surge began in July 2023 when Hidroelectrica, a state-controlled hydropower producer, went public through a significant flotation led by an investment fund. Since then, shares in Hidroelectrica have increased by more than 80 percent. Despite the exchange's impressive performance, only about one in a hundred Romanians has invested in the market.
This is due to the returns and the ease of investing, with smartphone applications like TradeVille and Investimental making it simple for retail investors. While there are still risks, such as the budget deficit and high inflation, Romania's exchange appears to defy conventional market wisdom.
Written by urgent.news from Emerging Europe's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
