Tuesday, June 2, 2009

Romanian Shares Climb to Seven-Month High, Piercing Key Level

By Irina Savu

June 1 (Bloomberg) -- Romania’s benchmark stock index broke through a psychological level of 3,400 to a more than seven- month high, led by energy companies, as oil advanced on speculation the global recession may be ending.

The BET Index rose 3.4 percent to close at 3,454.11 in Bucharest, the first time it breached the key level since Oct. 21. Petrom SA, the country’s largest oil company, advanced the most in two weeks, gaining 7.5 percent to 0.256 lei, while Transelectrica SA, Romania’s power grid operator, rose 2.5 percent to 12.3 lei.

Romanian stocks have benefited from a rebound in crude oil prices, which rose to a seven-month high, and mounting evidence that the global economy is recovering from its worst recession since World War II. The BET has risen 46 percent since March 25, when an International Monetary Fund-led bailout of 20 billion euros ($28 billion) bolstered confidence the nation will be able to finance its debt.

“There’s a lot of enthusiasm out there, oil is gaining, boosting energy companies,” Mario Chirila, a broker at Intercapital Invest SA in Bucharest, said.

The index may rise to the 4,000, extending a three-month rally by 17 percent in June if it closes higher this week, Chirila said.

“We’re waiting for the close this week to see a consolidation above the key level broken today and thus a confirmation the rally will extend gains this month,” he said.

Crude oil for July delivery rose as much as $1.98 to $68.29 a barrel on the New York Mercantile Exchange, after Chinese manufacturing expanded and the government raised domestic gasoline and diesel prices.

To contact the reporter on this story: Irina Savu in Bucharestisavu@bloomberg.net.

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