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The Bucharest Stock Exchange (BVB) opened the session on Monday, which coincides with the receipt of the emerging market status, declining on most indices.
Losses deepened in the middle of the day, the star also being the most traded share of the session, Erste Bank, (EBS), which showed a decrease of more than 10%, that is, a collapse.
This is how the top of the most traded stocks looked on the newly promoted Romanian stock exchange in the middle of the day
The Bucharest Stock Exchange ignored the timing of its transition to emerging market status and was guided by external indices, which follow the US banking scandal, which also involves Deutsche Bank, in which banks are accused of leaked confidential documents. in public they moved impressive illicit funds.
Romanian politicians
Several Romanian politicians wanted to make their voices heard on such an important day as this. We have selected the most interesting political statements.
Florin Cîțu, Minister of Finance: we are one click away from billions of euros
“It is equivalent, and I said then, it is equivalent to the entry of Romania into the European Union. Because then suddenly I had access to a very large market. I was part of a common market and, of course, all the companies in Romania had access from a This also means entering the FTSE Russell index, which means that suddenly, Romanian companies, the Romanian capital market is seen, it is one click away from the billions of euros that want to be invested. ”
Nicu Marcu, President of the Financial Supervisory Authority (ASF): More stock exchanges and investment firms want to grow their business
“What do we see right now? More stock exchanges and investment firms want their business to grow (some are even struggling !!!), more issuers would like financing to take advantage of development opportunities, and some investors eager to build a portfolio. The individual values matter a lot and are remarkable (…) “.
Leonardo Badea (BNR): an additional anchor in support of the integration process
“In the current context in which all economies compete fiercely for finance, effective entry into a higher category of capital markets amounts to an additional anchor to support the process of financial integration and European convergence, as well as to improve access to external capital. “.
Ludovic Orban (Prime Minister): There is a law that somehow blocks the listing of Hidro
“Unfortunately, in the process of developing the Stock Exchange, a law appeared that, I do not understand the reason why it was approved and I also challenged it in the Constitutional Court, unfortunately they did not give us justice, which in some way blocks the sale of assets, of shares that affect the processes that we have begun to list on the Stock Exchange of some important companies, such as Hidroeléctrica ”.
It actually happened a year ago
The Romanian capital market has been included in the indices of the global index provider FTSE Russell for emerging markets since September 21, 2020.
Global index provider FTSE Russell announced, on September 26, 2019, that Romania has been promoted from frontier market status to emerging secondary market status, and the decision will take effect from September 2020.
In April this year, FTSE Russell confirmed that Romania is about to be included in the FTSE emerging markets indices in the September 2020 review. The verification of eligibility for inclusion in the indices is based on trade data as of 30 June 2020. For a company to meet the liquidity criteria, it must have a median monthly liquidity of at least 0.05% for at least 10 out of 12 months. The liquidity measurement, according to the FTSE Russell methodology, is performed for each company as a ratio between the monthly median of the daily volumes traded and the number of freely floating shares.
Based on the calculations of the Bucharest Stock Exchange (BVB) and the current values regarding the number of shares considered free float, at the end of March 2020, two Romanian companies are about to be included in the market indices emerging from FTSE Russell, respectively Banca Transilvania (TLV) and SN Nuclearelectrica (SNN).
FTSE Russell’s decision to promote Romania to Emerging Market status from Border Market status was made after the country was on the monitoring list for three years.
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