BET-EF the first index dedicated to the companies in the energy utilities and financial sectors debuts on the Bucharest Stock Exchange
- Bucharest Stock Exchange is launching BET-EF, the first index dedicated to the best represented sectors on the Main Market. The index starts from the value of 1,000 points.
- The starting structure of the BET-EF index includes 11 companies from the energy, utilities and financial sectors, excluding investment funds.
- Romanian energy, utility and financial companies, listed on the Main Market, represent approximately 58% of the regulated market capitalization.
Bucharest Stock Exchange (BVB) is launching today, July 29, a new index, Bucharest Exchange Trading Energy, Utilities and Financials (BET-EF), dedicated to the best represented sectors in the capital market, energy, utilities and financial ones, except for investment funds. The BET-EF methodology allows a variable number of constituents in its structure, without imposing a maximum number. The starting structure of the BET-EF index includes 11 companies from the Main Market, selected based on liquidity as well as free-float market capitalization. The initial value of the index is 1,000 points.
‘The energy, utilities and financial sectors are among the most effervescent at the Bucharest Stock Exchange. We are glad of the good performance of the companies representing these sectors and we believe that we are in a win-win situation. The presence on the capital market gives tangible and intangible advantages, which are reflected in the evolution of the listed companies and are also transferred to the level of the entire capital market. We hope to see more and more companies listed on the capital market in the near future, which will also strengthen other representative sectors in the Romanian economy, such as technology and IT&C, agribusiness, real estate, FMCG, tourism or transport’, said Radu Hanga, Bucharest Stock Exchange President.
At the time of 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 Bucharest Stock Exchange (BVB).
‘With a share of approximately 58% of the total regulated market capitalization, Romanian energy, utilities and financial companies needed a representation also in the form of an index. The evolution of the capital market in recent years, with an increasing number of listed companies, has also resulted in a transformation of the spectrum of indices that BVB calculates and distributes. It is the fourth index we have launched in recent years, and we expect it to become a benchmark for retail and institutional investors who follow the market and need this type of reference index to build their investment portfolios’, said Adrian Tanase, CEO of the Bucharest Stock Exchange.
BET-EF index is a new price return index that was designed to reflect the performance of Romanian companies listed on the Main Market of BVB that are representative for the energy, utilities and financials sectors. Companies included in the index are selected based on liquidity as well as free-float market capitalization criteria to ensure that only the most liquid and the biggest companies from the three sectors are included in the index. BET-EF is a free-float market capitalization weighted index, with a variable number of constituents in its structure and a maximum weight of 20% for an index constituent.
The capitalization of the Romanian companies listed on the Main Market exceeded 350 billion lei, an increase of 25% 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, respectively approximately 58% of the total capitalization of the Main Market.
The last three indices launched by the Bucharest Stock Exchange, in 2021, were BETAeRO, BET-TRN and BET-XT-TRN. In total, BVB calculates and distributes in real time 12 reference indices, to which is added an index created in partnership with Vienna Stock Exchange, ROTX.
The BET-EF manual, which includes the index methodology, is available at this link. Similarly to the other indices that are part of the BET index group, BET-EF will be adjusted on a quarterly basis during the BVB indices’ periodic adjustments.
29.07.2024 / Editor, Andreea Dragan
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