The Bucharest Stock Exchange (BVB) announced on Monday the launch of a new index, the Bucharest Exchange Trading Energy, Utilities, and Financials (BET-EF), dedicated to the most well-represented sectors in the capital market: energy, utilities, and financials, excluding investment funds, according to a press release.
The methodology of the new index allows for a variable number of constituents without imposing a maximum limit. The initial structure of the BET-EF index includes 11 companies from the Main Market, selected based on liquidity and free-float market capitalization criteria. The index’s debut value is set at 1,000 points.
“The energy, utilities, and financial sectors are among the most dynamic at the Bucharest Stock Exchange. We are pleased with the strong performance of the companies representing these sectors and believe we are in a win-win situation. Being listed on the stock exchange brings tangible and intangible benefits that reflect on the companies’ performance and impact the entire capital market. We hope to see more companies listed on the stock exchange in the near future, strengthening other key sectors in the Romanian economy, such as technology and IT&C, agribusiness, real estate, FMCG, tourism, and transport,” stated Radu Hanga, President of the Bucharest Stock Exchange.
At the time of its launch, the BET-EF index includes the following companies: Banca Transilvania (TLV), OMV Petrom (SNP), Hidroelectrica (H2O), Romgaz (SNG), BRD – Groupe Societe Generale (BRD), Nuclearelectrica (SNN), Electrica (EL), Transgaz (TGN), Transelectrica (TEL), Premier Energy (PE), and the Bucharest Stock Exchange (BVB).
“With a weighting of approximately 58% of the total market capitalization, Romanian companies in the energy, utilities, and financial sectors needed representation in the form of an index. The evolution of the stock exchange in recent years, with an increasing number of listed companies, has also led to a transformation of the spectrum of indices calculated and distributed by BVB. This is the fourth index we have launched in recent years, and we expect it to become a reference point for retail and institutional investors who follow the market and need such benchmarks to build their investment portfolios,” stated Adrian Tănase, CEO of BVB.
BET-EF is a price index that reflects the performance of Romanian companies listed on the BVB’s Main Market, selected based on quantitative and qualitative criteria from the three covered sectors. These criteria ensure that only the most liquid and largest companies from these sectors are included in the index. BET-EF is also weighted by free-float market capitalization, with a variable number of constituents, and the maximum weight of any company in the index is capped at 20%.
The capitalization of all companies listed on the main segment of the stock exchange has exceeded 350 billion lei, a 25% increase compared to the same period last year. At the same time, the capitalization of all Romanian companies in the three sectors covered by BET-EF represents 200 billion lei, approximately 58% of the total capitalization of the main market segment.
The last three indices launched by the Bucharest Stock Exchange in 2021 were BETAeRO, BET-TRN, and BETXT-TRN. In total, BVB calculates and distributes 12 reference indices in real time, in addition to an index created in partnership with the Vienna Stock Exchange, ROTX. Similar to the other indices in the BET family, BET-EF will be adjusted quarterly during periodic adjustments.
