FTSE Russell

More Bucharest-listed companies make it to FTSE Russell EM indices

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Five Bucharest-listed companies will be included in the FTSE Russell index series dedicated to Emerging Markets, starting with March 21.

The inclusion of the companies MedLife (M), Purcari Wineries (WINE), Conpet (COTE), IMPACT Developer & Contractor (IMP) and Sphera Franchise Group (SFG) was decided by the global index provider following the quarterly review announced on Friday (Feb. 18). Thus, starting with March 21, M shares will be part of the FTSE Global All Cap indices while WINE, COTE, IMP and SFG will be included in the FTSE Global Micro Cap indices. At the same time, Nuclearelectrica (SNN), already included in FTSE Global All Cap indices since September 21, 2020, will move from Small Cap to the Mid Cap category.

“Romanian companies are increasingly attracting more attention from the global institutional investors. The FTSE decision also diversifies the sectors in which we are present in these indices ranging from real estate, transportation, medical services, foodservice to banking and industry”, said Adrian Tanase, CEO of the Bucharest Stock Exchange (BVB).

MedLife is the largest private healthcare services provider in Romania, founded in 1996 and listed on the BVB in December 2016, following an IPO worth RON 230mn.

Purcari Wineries is a top wine producer in Central and Eastern Europe, listed on the Main Market since February 2018, following an IPO worth RON 186 mn.

Conpet is a listed company since 2004 and its core business is the transportation through pipelines and by rail of the domestic and imported crude oil, rich gas, condensate and liquid ethane to the refineries in Romania.

IMPACT Developer & Contractor is a company founded with 100% Romanian capital and the first real estate developer listed on the exchange, in 1996.

Sphera Franchise Group, one of the most important foodservice operators in Romania, started trading on the Bucharest Stock Exchange in November 2017 following an IPO worth RON 285mn. The company manages restaurants under the KFC, Pizza Hut and Taco Bell brands and is the first foodservice operator listed on BVB.

Romania’s upgrade by FTSE Russell on September 21, 2020 among the Emerging Markets, has opened the way for the local capital market to a wider investment universe and, with the increase in the number of investors, the demand for the assets listed on Bucharest Stock Exchange has increased.

At the end of the trading session of February 18, 2022, the market capitalization of all companies listed on the Bucharest Stock Exchange was RON 247 bn (EUR 50 bn), 64% above the level from September 18, 2020, prior to the effective upgrade to Emerging Markets status.

FTSE Russell is a subsidiary of London Stock Exchange Group that produces, maintains, licenses, and markets stock market indices. The division is notable for FTSE 100 Index, Russell 2000 Index, among other indices. Approximately $17.9 trillion is benchmarked to its indices, and the company has served the world’s top asset owners, asset managers and investment banks for over 30 years.