Bucharest Stock Exchange remains on FTSE Russel’s short list for upgrade

British provider of stock market indices and associated data services FTSE Russell has kept the Bucharest Stock Exchange (BVB) on the list of “frontier markets” that could be upgraded to “secondary emerging market” in September 2019. Romania entered the shortlist in September 2016.

The FTSE Russell agency announces in September each year the classification of capital markets. At the end of March, it publishes an interim update on the progress made by the short-listed markets for promotion to another category.

In its March 2019 update, FTSE Russel acknowledged the efforts of BVB to convince new companies to list their shares. However, the Romanian stock market continues to suffer from low liquidity as the value of transactions declined by 16.2% (y/y) in the last 12 months, and no new IPO took place during this time frame, the agency also commented, according to Wall-street.ro.

“Romania remains on the short list as a frontier market, a status to be reconsidered for a possible reclassification as "secondary emerging market" in September 2019,” the agency officials said.

(Photo source: Facebook / Bursa de Valori Bucuresti)