The CEOs of exchanges in the Visegrad Group countries (Poland, Czech Republic, Slovakia, Hungary), Croatia, Romania and Slovenia have signed a letter of intent concerning the publication of a new Three Seas region exchange index CEEplus, according to a press release from Warsaw Stock Exchange.
The index portfolio will include more than 100 of the most liquid stocks of companies listed on Central and Eastern European exchanges in Bratislava, Bucharest, Budapest, Ljubljana, Prague, Warsaw and Zagreb. Stocks participating in the index have to meet the liquidity criterion: average value of trading per session of at least EUR 90,000 in six months period.
The participation of stocks in the index will depend on their free float and will be capped according to the 5/10/40 rule (i.e. participation of the biggest stock is capped at 10%, aggregate participation of stocks weighing more than 5% is capped at 40%).
Romania will be represented by Banca Transilvania, BRD, Transelectrica, Fondul Proprietatea, OMV Petrom, SIF Oltenia, Nuclearelectrica, Romgaz, Transgaz and Electrica.
The participation of stocks from any single country in the index portfolio will be capped at 50% (in practice, the cap applies only to stocks listed on GPW).
The letter of intent concerning the new regional index is a part of the ongoing collaboration among the CEE region’s capital markets. The project will ensure that the CEE exchanges speak with a stronger voice across debates concerning EU capital markets. The initiative opens the European Union to a coherent position of the entire region.
“More and more investors are looking for diversified investment opportunities involving Three Seas region blue-chips. The Polish capital market is one of the world’s 25 developed markets and it is our mission to promote Three Seas companies. I am glad that we can offer an innovative investment product in partnership with the exchanges and the biggest financial institution of the region,” said Marek Dietl, President of the GPW Management Board.
The new index will be published daily basing on closing prices converted at the exchange rate of the National Bank of Poland for local currencies, the euro, and the US dollar.
“The launch of a joint exchange index for companies in the V4 countries, Croatia, Romania and Slovenia is a major step towards closer regional co-operation, which opens the region to the world. The Three Seas Region could become the economic heart of Europe.
While the European Union undergoes a crisis of economic slow-down, Central Europe has a potential that is not fully tapped. The tool represented by CEEplus will make the region more attractive to investors, supporting even faster economic growth of the region,” said Prime Minister Mateusz Morawiecki.
CEEplus will be a price index and the underlying of a TFI PZU passive funds: inPZU CEEplus, yet another inPZU subfund of the umbrella fund in PZU SFIO. The fund with a suggested investment horizon of at least three years will be addressed to retail and professional clients and available on the inPZU platform.