Morgan Stanley Capital International (MSCI) decided, in its November Semi?Annual Index Review for the MSCI Equity Indexes, to include Electrica (EL) shares to MSCI Frontier Markets Index. The inclusion will be implemented as of the close of November 25, 2014, according to MSCI’s official announcement, Bucharest Stock Exchange (BVB) informs in a press release.
Before the Semi-Annual Review, MSCI Frontier Markets Index included four Romanian companies: Banca Transilvania (TLV), BRD – Groupe Societe Generale (BRD), OMV Petrom (SNP) and Romgaz (SNG).
Electrica was listed on July 4, 2014, in the largest IPO ever conducted on the Romanian capital market (EUR 444 mn), and its inclusion in the MSCI Frontier Market Index will enhance the visibility of the local market and its blue chips within the global investors’ community. Romanian companies are also included in other MSCI indices for Frontier Markets, such as MSCI Frontier Markets IMI, which includes also small caps, and MSCI Frontier Markets 100, which includes a selection of MSCI Frontier Markets IMI companies.
Before the review, MSCI Frontier Markets IMI included 7 companies, of which the 4 included in the standard index and other 3 small caps. The 3 small caps are Nuclearelectrica (SNN), Transelectrica (TEL) and Transgaz (TGN).
Also before the review, MSCI Frontier Markets 100 Index included 5 Romanian companies, of which the 4 included in the standard index and one small cap: Banca Transilvania (TLV), OMV Petrom (SNP), Romgaz (SNG), BRD – Groupe Societe Generale (BRD) and Transgaz (TGN). The total weight held by the Romanian companies in the index on November 6, 2014 was 2.90 percent. Compared to November 2013, when Romania was represented by only 3 companies, with a weight of 1.15 percent, the November 2014 figures look positive.