Which are the most transparent companies listed on the Bucharest Stock Exchange?
One in five, namely 16 companies listed on the Main Market of the Bucharest Stock Exchange, have received maximum scores for the 2023 VEKTOR by ARIR evaluation, the same number as last year. Four of the 38 issuers included in the BETAeRO index have also received maximum scores for investor communication, according to the VEKTOR by ARIR assessment.
Launched in 2019, the evaluation of investor communication through the VEKTOR by ARIR indicator takes place annually and showcases the most transparent companies listed on the Bucharest Stock Exchange. The indicator will also be extended to companies issuing bonds starting from 2025.
The VEKTOR by ARIR evaluation for companies listed on the BVB’s Main Market is based on a methodology that includes 10 criteria, which was updated in 2023 by a committee consisting of 12 members, representatives of institutional investors, individual investors, brokers, analysts, and representatives of institutions from the capital market, to enhance interaction with investors. For the companies included in BETAeRO, the assessment is based on an adapted methodology, which includes 11 criteria.
The 16 companies on the BVB’s Main Market that obtained maximum scores (10) in the VEKTOR 2023 assessment are: Antibiotice; AQUILA; Banca Transilvania; BRD; Digi Communications; Electrica; Farmaceutica REMEDIA; IMPACT Developer & Contractor; MedLife; OMV Petrom; One United Properties; Purcari; Nuclearelectrica; Romgaz; Sphera Franchise Group; TeraPlast. Three other companies got scores of 9.5 – Transilvania Investments – and 9 – Alro and Transgaz.
On the AeRO Market, AROBS, 2B Intelligent Soft, DN AGRAR Group, and Norofert got maximum scores for investor communication. Five other companies - 2Performant; Holde Agri Invest; ROCA Industry; SIMTEL TEAM; Softbinator Technologies – got VEKTOR 9.
The average of the VEKTOR by ARIR indicator for all companies listed on the Bucharest Stock Exchange’s Main Market is 4 (4.3 in 2022), and for companies in the Premium category is 7.8 (8.5 in 2022). The decrease of the results at the market level was due to the revision of the methodology. Regarding the companies in the BET index, the average of the VEKTOR by ARIR indicator for these companies is 9.1 (9.4 in 2022), slightly lower than the previous evaluation.
The average of the VEKTOR by ARIR indicator for companies in BETAeRO is 5, compared to 5.3 at the first evaluation from 2022. The number of companies included in BETAeRO in the 2023 evaluation increased by 7.
The most fulfilled criteria by companies in the Main Market, according to the VEKTOR by ARIR 2023 methodology, are: criterion 7, which requires the presentation of the company's board of directors and executive leadership, and criterion 8 which requires the publication of remuneration and dividend policies, criteria met by approximately half of the evaluated companies. On the other hand, only 24 companies comply with criterion 4, which requires the publication of the audio-video recording or bilingual transcript for financial results presentation teleconferences, and criterion 9, which requires organizing at least one annual event to present the company to investors.
VEKTOR by ARIR 2023 results are available on the webpage of each issuer on the Bucharest Stock Exchange (BVB) website, while aggregated data for all companies are available in the section dedicated to the VEKTOR indicator on ARIR’s website.
The evaluation of investor communication through the VEKTOR by ARIR indicator takes place annually, starting from 2019. Since 2022, the indicator was also extended to companies in the BETAeRO index. The VEKTOR by ARIR results have been annually audited by Mazars Romania. In 2024, ARIR will collaborate with experts in the capital market for VEKTOR by ARIR for bond issuers.
(Photo source: ARIR)
