Bucharest Stock Exchange launches new index for energy, utility and financial stocks

The Bucharest Stock Exchange (BVB) is set to launch a new index, the Bucharest Exchange Trading Energy Utilities and Financials (BET-EF), on July 29, 2024. This new index will focus on the most prominent sectors in the Romanian capital market, namely energy, utilities, and financials.

The BET-EF is a price index reflecting the performance of Romanian companies listed on the BVB's regulated market, selected based on quantitative and qualitative criteria within these sectors.

BET-EF will be a free-float market capitalization-weighted index with a variable number of constituents.

The maximum weight of any single company in the index is capped at 20%. The companies included in the index are chosen based on liquidity and free-float market capitalization to ensure that only the most liquid and substantial companies from the three sectors are represented.

BET-EF will initially include 11 companies, three of which are from the financial sector – Banca Transilvania (TLV), BRD - Groupe Société Générale (BRD), and Bucharest Stock Exchange (BVB), while the rest are energy and utility companies - OMV Petrom (SNP), Hidroelectrica (H2O), Romgaz (SNG), Nuclearelectrica (SNN), Electrica (EL), Transgaz (TGN), Transelectrica (TEL), and Premier Energy (PE).

Except for Premier Energy, all of these companies are also part of BVB's flagship index, BET.

The Bucharest Stock Exchange also has an index dedicated exclusively to the energy sector – BET-NG.

In the last 12 months, the BET index has gained 41% (not including dividends), while the BET-NG index has gained 32%.

The BET's superior performance was largely supported by the shares of the two banks – BRD (+63% year-on-year) and TLV (+58% yoy).

(Photo source: Inquam Photos/George Calin)