The Bucharest Stock Exchange (BVB) suspended trading at 11.08 on Wednesday morning following massive drops of almost 15%. The BVB council proposed the suspension of trading for the whole session day. Trading is due to reopen on Thursday.
The suspension was decided according to BVB rules thay say a session can be suspended if the BET index reaches of exceeds a level of temporary interruption of the session.
The level set for temporary suspension is -10% with a span of suspension period of at least 30 minutes. In case the BET index continues its fall to -15% afterwards, the session is suspended for the whole day.
By the time the session was suspended on Wednesday, the BET index reported a 9.25% fall, but the titles of Transylvania Bank, which covers 22.49% of the index, are suspended from trading since 17 September. The general index of the market, BET-C, showed a 10.68% loss, while BET-FI, covering the five financial investment societies, had fallen by 14.64%.
The Sibiu-based monetary-financial and commodities exchange Sibex also suspended trading but reopened at 11.30 for futures and options contracts.
It is the second time in history when the BVB suspends trading for the whole day, after a first on March 27, 2006, which was related to issues of capital market earnings taxation.