Bucharest Stock Exchange (BVB) will introduce, starting March 23, 2015 its second total return index, BET-XT-TR, which reflects the price performance of top 25 most traded Romanian companies, as well as the gross dividends and cash distributions made by those companies. The introduction of the new index will give investors a broader picture of the opportunities available on Romanian capital market.
BET-XT-TR index is based on the composition of BET-XT index, which includes the 25 most traded Romanian companies listed on the Bucharest Stock Exchange. With a market capitalization of approx. RON 74.63bn (EUR 16.78bn) at the end of the March 13, 2015 trading session, the companies components of BET-XT-TR represent over 93% in the total domestic market capitalization of the regulated market.
BVB has realized a backward computation of the new index since the beginning of 2013. The data revealed a return of 52% for BET-XT-TR during January 2013 – February 2015, 16 percentage points more than BET-XT, which rose by 36% for the same period of time.
For 2014, BET-XT-TR index performance was 11.1%, versus 6.3% the performance of BET-XT index. For the same period, the first total return index of BVB, BET-TR, registered an increase of 14.5% and an average dividend yield of approx. 9%.
BET-XT-TR index will be a tool that will let investors know that Romanian companies can generate profits and this level of profits is quite attractive and, at the same time, the new index encourages companies to promote a stable dividend policy. The draft of the new BVB Corporate Governance Codes entices all listed companies to elaborate on a dividend policy, as a set of directions related to the distribution of net profits that the company declares to follow, and publish it on the corporate website.
Like all indices of BET family, BET-XT-TR is rebalanced quarterly, after the close on the third Friday of the quarter-ending month. Investors wanting to track a complete picture for the overall performance of BVB blue chip companies can find more info about BET-XT-TR and BET family indices on the dedicated Indices section of the BVB website.