Romania’s promotion to the Emerging Market status, according to the classification of the global index provider FTSE Russell, had immediate effects on the Bucharest Stock Exchange. Romania became an Emerging Market and was included in several FTSE Russell indices dedicated to Emerging Markets starting from September 21st, turning September into a booming month for the local market as liquidity indicators trebled.

The total trading value with the shares of companies listed on the Bucharest Stock Exchange (BVB) exceeded half a billion euros last month, which represents an increase of over 260% both compared to August this year or September last year, when the FTSE Russell’s decision was published announcing the reclassification of Romania. Thus, in September, the trading value in the equity segment amounted to RON 2.7 billion, the equivalent of EUR 556 million. For comparison, in August, the same indicator showed a level of RON 747 million or EUR 154 million, while in September 2019 amounted to RON 726 million or EUR 153 million. Following the first 9 months this year, the transactions with shares posted a cumulative value of RON 9.64 billion or EUR 2 billion on the Bucharest Stock Exchange. Almost 28% of these transactions were made in September alone.

„The figures strongly strengthened the special significance regarding the promotion of Romania to a new status. At the same time, we need to be brutally honest: this is the immediate, visible effect but it is essential to have realistic expectations and to take into account the domestic and the international context we live in”, said Radu Hanga, President of the Bucharest Stock Exchange.

„The promotion of Romania is a continuous process, not only a mere stage. It is the fundamental element that Romanian investors should take into account. Our priority is to consolidate the status we have just gained by increasing the number of companies included in the Emerging Markets indices”, stated Adrian Tănase, CEO of BVB.

Two Romanian companies, Banca Transilvania (TLV) – the most traded company from BVB – and Nuclearelectrica (SNN) – a BVB-listed company in which the Romanian state is the majority shareholder – have met the necessary criteria to be included, starting from September 21st, in the All-Cap indices dedicated to Emerging Markets according to the classification of the global index provider FTSE Russell. Other Romanian companies listed on BVB can be included in the EM indices as soon as they meet the inclusion criteria. The first Romanian company that benefits from the market upgrade is TeraPlast (TRP), according to the FTSE Russell classification.

Author: Florin Cepraga, Senior PR Specialist, Bucharest Stock Exchange

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