Capital Markets: Bucharest Stock Exchange (BVB) status changed to Emerging Market by FTSE Russell

by Romanian Reporter - Monday, September 21, 2020 11:07 AM


Capital Markets: Bucharest Stock Exchange (BVB) status changed to Emerging Market by FTSE Russell

The upgrade from Frontier to the Secondary Emerging market status one was announced by the FTSE Russell agency a year ago and it came into effect on Monday, 21st of September 2020.

Two Romanian companies will be included in the FTSE Global All Cap index, as well as three other indexes: Banca Transilvania (TLV) and Nuclearelectrica (SNN). According to the broker BT Capital Partners though, a third company will be included in FTSE indexes as well: TeraPlast (TRP).

Romania's share in the indexes will be under 0.4%. For comparison, on the 31st of August, the smallest weight in FTSE Emerging All Cap, of 0.05%, belonged to Peru, which was downgraded, as of today, to Frontier market status. Czech Republic's weight, with 5 companies, is 0.11% and Hungary's, also with 5 companies, is 0.23% (both markets are categorized as Advanced Emerging). The index is massively dominated by China with 44.96%.

It is expected that the upgrade will provide higher liquidity to BVB, due to a confidence boost for the big institutional investors, who are often limited through their prospects to invest in less secure markets. 

FTSE Russell classifies the equity markets in four different categories:

  • Developed
  • Advanced Emerging
  • Secondary Emerging
  • Frontier

More on this topic on bursa.ro and digi24.ro

Photo by AbsolutVision on Unsplash


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