The representation of Romania’s equity market in the MSCI Frontier Markets indices is set to grow, with two additional Romanian companies slated for inclusion in MSCI's global benchmark indices. Starting November 26, 2024, shares of Turbomecanica (TBM) and Prebet Aiud (PREB), both listed on the Bucharest Stock Exchange, will join the MSCI Frontier IMI and MSCI Romania IMI indices, marking a boost for Romania's market presence in these widely-followed indices.

Turbomecanica, which produces components for the aeronautical industry, including jet engines for aircraft, is one of the oldest companies listed on the Bucharest Stock Exchange (since October 1998). It has a market capitalization of EUR 27 million. Prebet is a producer of precast concrete for the construction sector and has a market value of almost EUR 18 mln.

The quarterly review conducted by MSCI on November 6 revealed these changes, which will bring the total number of Romanian companies in the MSCI Frontier Markets indices to 34, up from the current 32. In addition to the new inclusions, TeraPlast (TRP) will shift from the MSCI Frontier and MSCI Romania indices—focused on mid- and large-cap companies—into the MSCI Frontier IMI and MSCI Romania IMI indices. This adjustment is due to TeraPlast’s capitalization falling below MSCI’s maintenance threshold for mid-cap classification.

Romania’s equity market, categorized as a Frontier Market by MSCI, is expanding its footprint in these indices. The country’s representation will now include a diverse portfolio of companies across various sectors, from energy and finance to technology and industrials. Notable Romanian companies in the MSCI Frontier Markets indices include Banca Transilvania (TLV), OMV Petrom (SNP), Hidroelectrica (H2O), and Romgaz (SNG), alongside the newly added Turbomecanica and Prebet Aiud.

"These additions to the MSCI indices highlight the growing recognition of Romanian companies in global capital markets," said Bucharest Stock Exchange representatives. "With this expanded representation, Romanian companies will likely attract more international investment, supporting the growth and liquidity of our equity market."

While MSCI classifies Romania as a Frontier Market, it holds an Emerging Market status with FTSE Russell, where it is represented by 11 major companies, including Banca Transilvania, Electrica, and MedLife. This dual classification underscores Romania's evolving role in the global investment landscape, with its companies increasingly positioned on the radar of international investors.

editor@romania-insider.com

(Photo source: 229810050 © Timon Schneider | Dreamstime.com)