>>> Sphera Franchise Group and Purcari Wineries join BET index of BVB
By Edwig Ban
Bucharest Stock Exchange (BVB), the flagship institution of the local capital market, increases from 13 to 15 the number of companies that will be included in BET and BET-TR indices. The Index Committee decided on September 3rd to include Sphera Franchise Group and Purcari Wineries in the main index BET and in BET-TR, the total return version of BET. It is for the first time in the history of the Romanian capital market when the two indices include 15 companies. The changes will come to effect from September 24th, according to a press release issued by the BVB.
"The investors were prepared for such a decision from last month when we announced BET and BET-TR indices could include a greater number of companies. Once expanded to 15 companies, the investors will benefit from the enhanced diversification of the companies comprised by these indices, thus providing a lower level of sectorial risk embedded in the two indices," said Adrian Tanase, CEO of BVB. "Two new fields of activity anchored in the national economy and which greatly contribute to the development and growth of Romania are now represented in the main index of BVB, a stock exchange which is more open than ever before to market opportunities and diversification", stated Lucian Anghel, President of the Board of Governors of BVB.
The shares of Sphera Franchise Group (SFG), one of the most important foodservice operators in Romania, started trading on BVB from November 9, 2017. The company, which manages restaurants under the KFC, Pizza Hut and Taco Bell brands, became the first listed foodservice operator on BVB.
Shares of Purcari Wineries (WINE), a leading CEE wine producer, started trading on the Main Market of BVB from February 15, 2018. Purcari marked the first public listing by a Moldova-based company on the Romania capital market. Purcari Wineries is one of the largest CEE wine groups, operating over 1,000 hectares of vineyards, and delivering to over 30 countries around the globe.
The weights of the indices’ components will be determined based on the number of shares and closing prices registered at the end of the trading session from September 14, 2018. The new structures of BVB indices will be announced at the end of September 14, 2018, and will become effective as of September 24, 2018.
BET (Bucharest Exchange Trading index) is the first index developed by BVB and represents the benchmark index for the local capital market. Established on September 19, 1997, BET has included a maximum of 10 companies for nearly two decades. In March 2017, it was expanded to 12 companies by including CONPET (COTE) and MedLife (M) in its structure. CONPET’s core activity is the transport through pipelines and by rail of the domestic and import crude, rich gas, condensate and liquid ethane to the refineries, whereas MedLife is the largest private healthcare services provider in Romania. Mid 2017, BET was expanded to 13 companies, following the inclusion of DIGI Communications (DIGI), important supplier of telecommunication services in Romania and Hungary.
Once Sphera Franchise Group and Purcari Wineries will be included in the two indices, the 15 companies from BET and BET-TR indices will be as follows: Banca Transilvania, BRD – Groupe Societe Generale, Bucharest Stock Exchange, CONPET, DIGI Communications, Electrica, Fondul Proprietatea, MedLife, OMV Petrom, Nuclearelectrica, Purcari Wineries, Romgaz, Sphera Franchise Group, Transgaz, Transelectrica.
The Index Committee also decided during the meeting from September 3rd to include the aluminium producer Alro in the Watchlist for a possible future promotion in the BET and BET-TR indices.
Last month, BVB Board approved a series of changes to BVB indices’ methodologies, after a similar decision of BVB’s Index Committee. New rules were introduced for BET and BET-TR so that the two indices reflect the evolution of the most liquid companies listed on BVB. In the same meeting, BVB Board decided to expand to a maximum of 20 the number of companies that can be part of the two indices. These changes are designed to ensure improved transparency and predictability for investors.