Record Highs in Bucharest: How Romania's Stock Market and Energy Giant Hidroelectrica Are Rewarding Investors

The Bucharest Stock Exchange has been enjoying one of the most remarkable periods in its history. After years of steady but unspectacular growth, Romania's main market has surged to a series of record highs, rewarding investors handsomely. At the heart of this rally lies the country's booming energy sector and its state controlled giants.

A record breaking 2025

The strength of the market first became clear in 2025, which turned out to be a banner year for Romanian shares. The benchmark BET index, which tracks the most important companies listed in Bucharest, climbed to a historic high of 24,439 points. This represented an annual gain of 46 percent, rising to 55 percent when dividends were included.

To put this achievement in perspective, it marked the best performance of the Romanian market since 2009. Such gains placed the Bucharest exchange among the standout performers in the region, drawing renewed attention from both local and international investors who had previously overlooked the market entirely.

Momentum carries into 2026

The bullish mood did not fade with the arrival of the new year. In the opening days of 2026, the BET index crossed the symbolic threshold of 25,000 points for the first time ever. In just the first two trading sessions, on 5 and 8 January, the index advanced by 3.3 percent, signalling that appetite for Romanian shares remained strong.

Trading activity reflected this enthusiasm. On 8 January alone, transactions reached 120 million lei, with the lender Banca Transilvania accounting for around one third of the total volume. Analysts noted that much of the movement appeared to reflect a delayed alignment with positive trends on foreign exchanges rather than dramatic changes in fundamentals.

Energy stocks lead the charge

The clearest driving force behind the rally has been the energy and utilities sector, which now makes up a large share of the index. During 2025, these companies delivered spectacular returns for their shareholders. The gas transport operator Transgaz soared by an extraordinary 180 percent, leading the pack by a very wide margin.

Other energy names also posted impressive gains during the year. Electrica rose 98 percent, Transelectrica added 97 percent, and the gas producer Romgaz climbed 93 percent. Beyond the energy sector, the telecommunications group Digi advanced 80 percent, while the private healthcare provider MedLife gained 73 percent, showing the breadth of the rally.

Hidroelectrica rewards shareholders

One company stands out above all others on the Bucharest exchange, and that is Hidroelectrica. As Romania's largest energy producer, the state controlled firm has become a firm favourite among investors. With a market capitalisation of around 66 billion lei, it is by far the largest company listed on the entire exchange.

The company has just made a major announcement that delighted its shareholders. Hidroelectrica plans to distribute its entire net profit for 2025, amounting to 3.3 billion lei, or about 673 million euros, in the form of dividends. Shareholders were due to vote on the distribution at a general meeting held on 28 April 2026.

For individual investors, the numbers are attractive. The gross dividend was set at approximately 7.35 lei per share, based on a trading price of 147.8 lei, translating into a yield of around 5 percent. The payment itself is scheduled to be made on 25 June 2026, providing a welcome return for those holding the stock in their portfolios.

A significant portion of this money will flow directly to the state. Because the Ministry of Energy holds just over 80 percent of the company's share capital, the state budget is set to receive around 2.6 billion lei from the distribution, underlining the strategic importance of the company to Romania's public finances.

Strong results despite drought

The dividend comes despite a challenging year for the business. Hidroelectrica's profit actually fell by 20 percent compared with the previous year, weighed down by a severe drought that led to the lowest hydropower production in Romania's history. Even so, revenues still managed to rise 5 percent to reach 9.61 billion lei over the period.

Taken together, the record run of the Bucharest exchange and the generous rewards offered by companies like Hidroelectrica tell a story of a market coming into its own. Driven by a powerful energy sector and growing investor confidence, Romania's stock market has firmly established itself as one to watch closely in the years ahead.