Three more companies on Bucharest Stock Exchange included in MSCI indices
<p>The shares of three companies listed on the Bucharest Stock Exchange - Premier Energy, Electromagnetica, and Iproeb Bistrița - will be included in the MSCI Frontier and MSCI Romania indices. </p>
<p>Premier Energy, which was listed on the Bucharest Stock Exchange at the end of May, will be included in the MSCI Frontier and MSCI Romania indices, which cover Mid Cap and Large Cap companies. Electromagnetica and Iproeb Bistrița will join the MSCI Frontier IMI and MSCI Romania IMI indices, which include Small Cap, Mid Cap, and Large Cap companies. </p>
<p>Romania has 32 companies in Morgan Stanley Capital International, or MSCI, indexes, following the August 2024 quarterly review conducted by global index provider MSCI. These are Alro, Banca Transilvania, BRD Groupe Société Générale, Conpet, Compa, Digi Communications, DN Agrar Group, Hidroelectrica, IAR SA Brașov, Impact Developer and Contractor, Nuclearelectrica, OMV Petrom, Romgaz, Electrica, MedLife, One United Properties, Teraplast, Transelectrica, Transgaz, TTS Transport Trade Services, Arobs Transilvania Software, Bittnet Systems, Bucharest Stock Exchange, Prospectiuni, Purcari Wineries, Safetech Innovations, Simtel Team, Sphera Franchise Group, 2B Intelligent Soft, Premier Energy, Electromagnetica, and Iproeb Bistrița.</p>
<p>Concurrently, MSCI has decided to exclude Antibiotice from the MSCI Frontier IMI and MSCI Romania IMI indices, according to the <a href="https://bvb.ro/AboutUs/MediaCenter/PressItem/Creste-reprezentarea-pietei-de-capital-din-Romania-in-indicii-MSCI-Premier-Energy-Electromagnetica-si-Iproeb-Bistrita-vor-fi-incluse-in-indicii-MSCI-din-2-septembrie/6081">BVB press release</a>.</p>
<p>MSCI is a global provider of benchmark indices. Currently, MSCI classifies Romania as a Frontier Market.</p>
<p>In contrast, Romania is classified as an Emerging Market by the international index provider FTSE Russell, where it is represented by 15 listed companies, including AROBS Transilvania Software, Banca Transilvania, Electrica, Hidroelectrica, MedLife, Nuclearelectrica, OMV Petrom, One United Properties, Teraplast, Aquila, Bittnet Systems, Bucharest Stock Exchange, Conpet, Purcari Wineries, and Sphera Franchise Group.</p>
<p>Romania is eagerly awaiting a potential reclassification from MSCI as an Emerging Market, particularly since it already meets most of the stringent criteria required for such a status. Of the three minimum criteria, five Romanian companies -Hidroelectrica, OMV Petrom, Romgaz, Banca Transilvania, and BRD - already meet the size criterion, according to <a href="https://economedia.ro/analiza-romania-indeplineste-deja-cele-mai-stricte-criterii-pentru-a-fi-promovata-de-msci-la-statutul-de-piata-emergenta-ce-ii-lipseste.html">Economedia</a>.</p>
<p>The remaining criterion is liquidity, which currently only Hidroelectrica meets. However, OMV Petrom and Romgaz are close to meeting the liquidity threshold, requiring only about a 15% increase in their average daily trading volume. Banca Transilvania needs a 23% increase, while BRD is about 40% away from meeting the minimum liquidity threshold. </p>
<p>Achieving Emerging Market status could bring a significant influx of passive investment and new active investors to Romania. Historically, countries upgraded to Emerging Market status by MSCI have seen substantial positive effects on their capital markets, especially in the year leading up to the announcement. </p>
<p><em><a href="mailto:radu@romania-insider.com">radu@romania-insider.com</a></em></p>
<p><em>(Photo source: BVB)</em></p>