Bucharest Stock Exchange Posted
Bittnet (BNET) shares will enter FTSE Global Micro Cap and FTSE Total-Cap indices as of March. Thus, Romania will have 4 companies in FTSE Russell indices: Bittnet Systems and TeraPlast (TRP) in FTSE Global Micro Cap and FTSE Total-Cap indices, and Banca Transilvania(TLV) and Nuclearelectrica (SNN) shares in Emerging Markets indices.
Bucharest Stock Exchange (BVB) informs that Bittnet Systems (BNET) shares will be included in the FTSE Global Micro Cap and FTSE Total-Cap indices as of March 22nd, following the latest semi-annual revision of the FTSE Russell indices. The final list of companies to be included in these indices will be announced on March 5th.
Thus, Romania will have two companies in the two indices, respectively Bittnet Systems and TeraPlast. The shares of the construction materials producer were included in the two indices in September 2020, when Romania was effectively upgraded to Emerging Market status, by the inclusion of Banca Transilvania and Nuclearelectrica in the Emerging Markets indices. FTSE Global Micro-Cap is part of the FTSE Total-Cap index series and is aimed at companies in the micro sector, according to the FTSE Russell classification. The inclusion of Romanian companies in these indices contributes not only to visibility, but also to attracting capital from fund managers.
“FTSE Russell announcement is a very important news for the entire capital market and even more so for all those who chose to invest in Bittnet shares. Romania’s upgrade to Emerging Market status has benefits not only for companies that enter the indices for Emerging Markets, but also for other companies that, once included in the microcaps indices, enter the radars of new international investors following these indices. The inclusion of Bittnet shares in the two FTSE Russell indices, nine months after the promotion of the company from AeRO on the Regulated Market, demonstrates that the capital market validates the companies success stories”, said Radu Hanga, Bucharest Stock Exchange Chairman of the Board.
“The announcement of FTSE Russell to include Bittnet shares in its global indices is very satisfying, because it is yet another confirmation that entrepreneurial companies, even when easily labeled as «small», can bring significant liquidity to the market. I think this decision of FTSE Russell, 5 months after the inclusion of BNET shares in the BET-XT index, should redouble the signal for local professional investors to diversify their portfolios and get much needed exposure to a high growth IT company. We would like to address special thanks to all our investors who in the past 6 years traded so actively BNET shares – our inclusion in FTSE Russell’s indices is the true testimony of the power and influence they have over the local stock market “, said Cristian Logofatu, Bittnet Systems Cofounder.
”Bittnet becomes a benchmark story for the Bucharest Stock Exchange, because in its six years of presence on the capital market it has used to the maximum the market mechanisms to attract financing, to increase visibility, but, especially, to expand. Bittnet’s path from the listing back in 2015 to the present demonstrates the efficiency of listing and financing through the capital market for the development of companies in a sustainable way and the fact that investors «recognize» such a path by evaluating the company on the stock exchange and the inclusion in FTSE Russell indices come as a natural consequence of all this. We want to have as many Romanian companies in the FTSE Russell indices as possible, because in this way we consolidate the status of an emerging market and, at the same time, we are more visible on the radars of international investors”, stated Adrian Tanase, BVB CEO.
Romania’s upgrade by FTSE Russell, in September 2020, among the Emerging Markets opened the way for the capital market to a much wider investment universe, and with the increase in the number of investors, the demand for Romanian assets is higher, which will it also translate into a better valuation of listed companies and thus an increase in local market capitalization.