The Bucharest Stock Exchange, BVB, said that it has been included in the emerging market indices of global index provider FTSE Russell, according to SeeNews.com.
The effective promotion to the emerging market status will allow the Romanian capital market and economy to absorb new funds in the coming years and sends a strong signal to privately-owned and state-owned companies that they can grow significantly via the stock market, BVB said in a press release.
New investment funds that manage billions of euro will be able to invest in the Romanian companies listed on BVB, which was previously impossible due to the restrictions generated by the country’s former frontier market status, it added.
“We are witnessing a historic moment. It is a clear and indisputable international recognition that the Romanian capital market receives. It is more than a validation of the values promoted by the capital market; it is a validation of Romania’s efforts to be included in an unprecedented investment universe,” Bucharest Stock Exchange CEO Adrian Tanase said.
The new classification comes after FTSE Russell promoted Romania to the secondary emerging market status in September 2019.
Local lender Banca Transilvania [BSE:TLV] and nuclear power plant operator Nuclearelectrica [BSE:SNN] have met the necessary criteria to be included in the All-Cap indices dedicated to emerging markets, which include large, medium, and small capitalisation companies, excluding the micro-sector.
Thus, Banca Transilvania became the first privately-owned Romanian company listed on BVB that is included in the FTSE Russell indices dedicated to emerging markets.
“23 years ago, when we were listed on the Bucharest Stock Exchange, we were a small bank with a capitalisation of 10 million dollars. Today we are delighted to contribute from a leading position both in the banking sector and in terms of liquidity on the stock exchange to Romania’s inclusion in the FTSE Russell index,” Horia Ciorcila, Charmain of Banca Transilvania’s Board of Directors, was quoted as saying.
Also, Nuclearelectrica became the first majority state-owned Romanian company listed on BVB that is included in the FTSE Russell indices dedicated to Emerging Markets.
“Our inclusion in the FTSE Russell index as of this autumn reflects our efforts and motivation to have a robust company and at the same time to support the development of Bucharest Stock Exchange by attracting new investors,” Nuclearelectrica CEO Cosmin Ghita said.
Plastic products manufacturer TeraPlast [BSE:TRP] will be the first Romanian company to be included in the FTSE Global Micro-Cap index.
Banca Transilvania was trading 3.25% higher at 2.38 lei on the BVB as of Monday 1148 CET.
Nuclearelectrica shares changed hands 1.35% higher at 16.5 lei on the BVB as of Monday 1145 CET.
TeraPlast shares traded on Friday up 16.43% to 8.15 lei on the BVB.
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