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| October 21, 2021 |
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BVB is launching BET AeRO the first index for the AeRO market

10/11/2021

  • Bucharest Stock Exchange is launching the first index for the AeRO market, BET AeRO. The index starts with a value of 1,000 points.
  • The market capitalization of all companies listed on the AeRO market has exceeded RON 15bn, a 57% increase over the last year.
  • BVB is also launching today, 11th October, the first net total return indices, BET-TRN and BET-XT-TRN.

 

Bucharest Stock Exchange (BVB) is launching the first index for the AeRO market, BET AeRO, which includes representative companies from this market. At the time of launching, BET AeRO includes 20 companies selected based on quantitative criteria and starts with a value of 1,000 points. The methodology for the new index allows a variable number of constituents in its structure and does not impose a maximum number. The launching of the first index on the AeRO market is a follow-up of the market development and of the increasing investor interest in the companies listed on this market. The market capitalization of the companies listed on the AeRO market has exceeded RON 15bn, a 57% increase over the last year. During the first nine months of 2021, 17 new companies have been listed on the AeRO market, with a total market capitalization of RON 1.3 bn.

‘The launch of BET AeRO, an index dedicated to the Romanian companies listed on the AeRO market, is an important moment in the development of the overall capital market. Thus, we answer to both investor demand, and to the transformation undergone by this market, especially since the beginning of this year. With 17 listings on the AeRO market this year alone, and 17 bonds listed on the Multilateral Trading System, we demonstrate, yet again, that the stock exchange is the right place for Romanian entrepreneurs seeking financing, visibility, and transformation’, said Radu Hanga, President of the Bucharest Stock Exchange.

The BET AeRO methodology will allow, in the future, the inclusion of new companies into the index structure, as they meet the eligibility criteria. The two quantitative criteria of the BET AeRO index are liquidity and free-float capitalization. For a company to be included into the index basket, it is necessary that at the time of the analysis for its liquidity coefficient to be at least 0.5% (50 bps) and its free-float capitalization must be at least RON 5 mn. A company already included in the index basket will be maintained if at the time of the analysis its liquidity coefficient is at least 0.2% (20 bps). The weight of the companies in the index basket takes into account the free-float level of each company while the maximum weight that a company may have in the index basket is 15%.

‘The companies included in the BET AeRO index at the time of the launch account for approximately 40% of the capitalization of the Romanian companies listed on the AeRO market and have generated more than 85% of the liquidity of the secondary market of this segment over the past year. The BET AeRO launch is a normal step in the market development, as one of our efforts to develop, along with simplifying the access to the market for companies which intend to get listed on the alternative segment starting with 2022. Moreover, we are glad to launch at the same time two new indices for the Main Market which come in addition to BET and BET-XT indices with their net total return variants’, said Adrian Tanase, CEO of Bucharest Stock Exchange.

The composition of the BET AeRO index on the date of launching, 11th October, is provided in the table below:

No.

Ticker

Weight in the BET AeRO structure (%)

No.

Ticker

Weight in the BET AeRO structure (%)

1.

CHOB

            14,97

11.

MACO

              4,05

2.

HAI

            12,17

12.

ALW

              3,94

3.

SAFE

              8,96

13.

MAM

              3,17

4.

NRF

              8,93

14.

2P

              2,47

5.

HUNT

              6,45

15.

LCSI

              2,09

6.

SMTL

              5,95

16.

LIH

              1,63

7.

ELZY

              5,87

16.

FRB

              1,12

8.

AG

              5,87

18.

BIOW

              1,08

9.

MILK

              5,33

19.

AAB

              1,01

10.

AST

              4,30

20.

CLAIM

              0,65

 

Since the beginning of this year, the AeRO market has registered more than 251,000 transactions, an almost three times increase over 2020. The total value of transactions on the AeRO market exceeded RON 840 mn, a 147% increase than last year. The average trading value has been RON 4.3 mn.

BET-TRN and BET-XT-TRN are the net total return variants of BET and BET-XT indices and are the first indices of this type launched by BVB. Thus, the two indices will be adjusted based on the net of tax value of the dividends offered by the companies included in the index basket. The two indices have the same compositions as BET and BET-XT.

The index management rules for the three new indices, BET AeRO, BET-TRN and BET-XT-TRN are available at this link, in the dedicated section of each index. Similarly to the other indices from the BET index series, the three new ones will be adjusted on a quarterly basis during the periodic adjustments.