Romania Promoted to Emerging Market Status

The mentioned reclassification of the status will take effect from September 2020.

The Bucharest Stock Exchange published an announcement stating that the Global index provider FTSE Russell promoted Romania to Emerging Market from Frontier Market status, three years after the country was added to the Watch List. Note that the mentioned reclassification of the status will take effect from September 2020.

The companies to enter the index are Banca Transilvania, BRD and Romgaz.

According to FTSE Russell, these are the projected percentage weight in index of the three eligible Romanian securities in the FTSE global headline indexes based on data as of close 30 August 2019:

FTSE Global All Cap (Large/Mid/Small) – 0.008%
FTSE All-World (Large/Mid) – 0.009%
FTSE Emerging All Cap (Large/Mid/Small) – 0.078%
FTSE Emerging (Large/Mid) – 0.085%

The upgrade to Emerging Market will allow the Romanian capital market and the Romanian economy to absorb new funds and send a strong signal to both state-owned and privately held companies that they have significant room to grow on the stock exchange.