BET-EF: First Energy and Finance Index Debuts on Bucharest Stock Exchange
The Bucharest Stock Exchange (BVB) launched the Bucharest Exchange Trading Energy, Utilities, and Financials (BET-EF) index on July 29. This new index focuses on the prominent sectors in the capital market: energy, utilities, and financials, excluding investment funds. The BET-EF index allows for a variable number of constituents without a fixed maximum, starting with 11 companies from the Main Market, selected based on liquidity and free-float market capitalization. The initial value of the index 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 these companies and believe this index creates a win-win situation. Market presence offers tangible and intangible benefits, reflected in the growth of listed companies and the broader market. We hope to see more companies from other sectors like technology, agribusiness, real estate, FMCG, tourism, and transport listed in the future,” said Radu Hanga, President of the Bucharest Stock Exchange.
The initial companies in the BET-EF index include 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 about 58% of the total regulated market capitalization, the energy, utilities, and financial sectors needed an index representation. The growing number of listed companies has transformed the indices that BVB calculates. This is the fourth index we’ve launched recently, and we expect it to become a benchmark for investors,” said Adrian Tanase, CEO of the Bucharest Stock Exchange.
BET-EF is a price return index reflecting the performance of Romanian companies in the energy, utilities, and financial sectors, selected based on liquidity and free-float market capitalization. It is a free-float market capitalization-weighted index, with a variable number of constituents and a maximum weight of 20% for any index constituent.
The capitalization of Romanian companies on the Main Market has exceeded 350 billion lei, a 25% increase from the previous year, with 200 billion lei representing companies in the BET-EF sectors, about 58% of the Main Market capitalization.
The last three indices launched by BVB in 2021 were BETAeRO, BET-TRN, and BET-XT-TRN, making a total of 12 reference indices calculated and distributed by BVB, alongside the ROTX index in partnership with the Vienna Stock Exchange.
The BET-EF manual, detailing the index methodology, is available online. Like other BET indices, BET-EF will be adjusted quarterly during BVB’s periodic index adjustments.
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