Romania's promotion to emerging secondary market will attract new investments

Romania's reclassification by global index provider FTSE Russell from frontier market to emerging secondary market will bring new investments to the Bucharest Stock Exchange (BVB), consider Wood & Co analysts cited in a BVB statement.

The two Romanian companies that will be included in the FTSE Russell indices, specifically Banca Transilvania and Nuclearelectrica, will attract 59 million dollars in cumulative investments as a result of the promotion of the Romanian capital market to a new status.

"These investments will come from passive exchange-traded funds (ETFs) that follow the global indices of emerging markets according to the FTSE Russell classification, and which are currently not active in the local market. The increase in the number of companies included in these indices and implicitly, a higher representation of Romania in emerging market indices will contribute to attracting new funds that will invest in the Romanian listed companies," the release mentions.