Bucharest Stock Exchange (BVB) announced on Monday that it is launching the first index for the AeRO market, BET AeRO and that the index will start with a value of 1,000 points, according to a press release.
The market capitalization of all companies listed on the AeRO market has exceeded RON 15bln, a 57% increase over the last year. BVB is also launching on Monday the first net total return indices, BET-TRN and BET-XT-TRN.
“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. (…) With 17 listings on the AeRO market this year alone and 17 bonds listed on the Multilateral Trading System, we demonstrate 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.
BVB said that 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 in 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,” added BVB.
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%.