THE IMPACT OF THE COVID-19 PANDEMIC ON THE ROMANIAN CAPITAL MARKET. ANALYSIS OF THE EVOLUTION OF THE BET INDEX IN THE PERIOD JANUARY-DECEMBER 2020

Vasut Ovidiu-Mihai and Ioana Cristina Sechel
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Vasut Ovidiu-Mihai: BABES-BOLYAI UNIVERSITY, CLUJ-NAPOCA, ROMANIA

Annals - Economy Series, 2021, vol. 1, 283-290

Abstract: The emergence of the "Coronavirus Crisis" worldwide and the impact on the economic environment and the capital market is a topic of novelty and interest that requires an approach from both a financial and social perspective. The links between the events generated by the SARS CoV-2 virus pandemic are not only with the social or medical environment, but they also extend to the economic and financial environment. The aspects covered in this article concern the impact of the appearance and development of the SARS CoV-2 pandemic on the international capital market and implicitly on the main stock market indices. It is interesting how the BET index evolved during 2020, both from the perspective of external and internal factors, and implicitly their effects on the Romanian capital market. Through the comparative analysis of the obtained data and their own processing, we tried to emphasize the importance of the contagion factor in the financial environment as well as the effects it has on the Romanian capital market. The obtained results revealed that, due to this factor corroborated with the globalization phenomenon, the evolution of the BET index is influenced to a much greater extent by the evolution of the indices on the developed markets, to the detriment of the internal factors. The Romanian capital market, through the BET index, also reacted to national events with an impact on the national economic ecosystem, in the context of the evolution of the pandemic and the restrictive measures imposed by the Romanian authorities. The Romanian capital market is still influenced by the evolution of the SARS CoV-2 pandemic, both globally and nationally, but recently it has registered an increasing trend, managing to offer stability to both investors and issuers. The "Coronavirus crisis" will continue in the next period, and its impact on the stock market environment will be a research topic of interest, especially in the context of starting the global vaccination process.

Keywords: coronavirus; stock market; economy; stock indices; emergency; capital market. (search for similar items in EconPapers)
Date: 2021
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