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OMV Petrom and TeraPlast shares will be included in FTSE indices dedicated to Emerging Markets

 

  • OMV Petrom (SNP) and TeraPlast (TRP) shares will be included, as of September 20th, in FTSE indices for Emerging Markets, joining Banca Transilvania (TLV) and Nuclearelectrica (SNN) shares.

 

  • Romania thus consolidates its weight in FTSE Russell indices, having five companies present in all the global provider’s indices: Banca Transilvania, Nuclearelectrica, OMV Petrom, TeraPlast and Bittnet (BNET).

 

The inclusion of OMV Petrom, the largest energy company in South-Eastern Europe, and TeraPlast, the leader of the PVC pipe market and one of the most important players on the Romanian installations market, in FTSE Global Equity Index Series was decided by the global index provider following the half-yearly review, announced on Friday, August 20th. The two companies will be part of the index starting with September 20th.

 

`FTSE’s decision regarding the inclusion of OMV Petrom in the All-Cap indices and, at the same time, TeraPlast’s upgrade from FTSE Global Micro-Cap index to FTSE Global All-Cap index validates the potential of the Romanian capital market and its dynamism. In just one year, Romania's presence in FTSE Russell indices has increased from three to five companies and we are glad that we are present with as diverse fields as possible, from energy and financial, to IT, because we present a relevant picture to global investors in regarding the offer of companies in which they can invest on BVB.

 

This offer continues to diversify and grows by listing new companies at BVB, and 2021 is the best year in the last 22 in terms of the number of new companies coming to market, either with shares or bonds`, stated Radu Hanga, Bucharest Stock Exchange (BVB) President.

 

OMV Petrom was listed on BVB on September 3rd, 2001 and is the largest Romanian company on Bucharest Stock Exchange, with a capitalization of RON 23.7bn (EUR 4.8 bn), at the end of Friday's trading session.

 

`We appreciate the inclusion of OMV Petrom shares in the FTSE Russell indices, which shows the attractiveness of our company's shares as an investment option. It is the result of our continuous effort to improve operational and financial performance and also to increase transparency for our company. With the inclusion in these indices we expect an additional increase in the attractiveness of OMV Petrom shares for a wider and more diversified investor base`, said Alina Popa, CFO, member of the OMV Petrom Executive Board.

 

TeraPlast was listed on July 2nd, 2008, and at the end of Friday's trading session had a capitalization of RON 1.7bn (EUR 352.2mn).

 

`The inclusion of TeraPlast in the FTSE Rusell indexes validates us as an important player on the Romanian economic landscape and especially as a relevant issuer on the capital market. It is another confirmation of our last 12 months’ performance, materialized in the almost 3-fold increase of TeraPlast share price on the stock exchange, together with the distribution of substantial dividend, which made the title very attractive. We have managed to meet the demanding liquidity criteria, specific to FTSE Russell, such as appreciable maintained volumes for a long period of time. Our investors have, beyond our solid results, a confirmation that they have invested in an important issuer, with consistent free-float. From now on, TeraPlast remains on the grid of the largest international investors, which means even more attractiveness and potential added-value. Beyond the effects on TeraPlast, there is an added visibility of the Romanian capital market in the international landscape. As part of our development strategy, we shall continue to deliver performance that will be reflected in both the stock price and the investors’ benefits`, said Alexandru Stanean, TeraPlast CEO.

 

Prior, in September 2020, when Romania was upgraded to Secondary Emerging Market status by FTSE Russell, the shares of the construction materials manufacturer were included in FTSE Global Micro-Cap index, this being a first effect of promoting the Romanian market.

 

In March 2021, Bittnet shares were also included in FTSE Global Micro-Cap index, so that since March Romania has had four companies in this index.

 

`We congratulate all the five companies included in FTSE Russell’s indices and we are glad that together with them we can increase Romania's representation on institutional investors’ radars. At the same time, the increase in the number of Romanian companies in FTSE Russell indices shows that together we have taken the best steps to improve the liquidity of these companies, namely the program for the Issuer's Market Maker, increasing the number of companies covered by analysis reports, through BVB Research Hub, and promoting these companies among investors, including through the implementation of ESG standards, which are gaining increasing importance in the investment decisions of international investors. Our projects for improving liquidity will continue and we are convinced that once CCP.RO Bucharest is operational we will see an even more important impetus in this direction`, mentioned Adrian Tanase, Bucharest Stock Exchange CEO.

 

Romania’s upgrade by FTSE Russell, on September 21st, 2020, among Emerging Markets opened the way for the capital market to a wider investment universe, and with the increase in the number of investors, the demand for assets listed on BVB is higher.

 

At the end of Friday, August 20th, 2021, trading session the market capitalization of all companies listed on Bucharest Stock Exchange was RON 213.6bn (EUR 42.3bn), almost 50% (RON 69.7bn / EUR 12.3bn) above the level of September 18th, 2020, prior to the effective promotion to Secondary Emerging Market status (RON 143.9bn – EUR 30.9bn).

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