Morgan Stanley Capital International (MSCI) said it will add Romanian blue-chip
power distributor and supplier Electrica to its MSCI Frontier Markets
Index.
The inclusion will be implemented as of the close of November 25,
MSCI said in a statement late on Thursday.
The MSCI Frontier Markets
Indextracks the stock markets of countries which are even more volatile than
emerging markets. Romanian companies Banca Transilvania [BSE:TLV], OMV Petrom
[BSE:SNP], Romgaz [BSE:SNG], BRD-GSG [BSE:BRD] and Transgaz [BSE:TGN] are
already included in the index.
The MSCI index of frontier markets is
followed by investment funds that manage assets worth some $12.4 billion
(9.3billion euro), local financial daily Ziarul Financiar has
reported.
Commenting on the news, Raiffaisen Bank said in a note to
investors on Friday,"We believe that some $1 billionpassive funds are tracking
Frontier Markets Indexes and we estimate the potential weight of Electrica in
MSCI FM 100 at 0.5%."
Raiffeisen Bank rated the news as positive for the
share price of Electrica.
Electrica was traded 1.92% up at 12.24 lei
($3.4/2.8 euro) by 1004 CET on the Bucharest Stock Exchange on Friday.