Alro Slatina (ALR) today marks more than 21 years of presence at the Bucharest Stock Exchange (BVB) by entering the structure of the BET index. Thus, the index extends to 16 components, in an attempt by our capital market operator to diversify the composition of the main basket of shares from the BSE.

„Normally, inclusion in the BET index should mean a higher interest in ALR from a wider pool of investors. Here I refer in particular to institutional investors for whom the BET index is used as a benchmark and which, up to now, could have had reservations about these actions, including through the free float (less freely traded shares). In principle, higher liquidity and visibility for company shares means lower costs of capital,” says Ovidiu Dumitrescu, deputy general manager of Tradeville, quoted by Bursa.ro.

„The potential disadvantage is given by the possibility that, in the event of a wider negative market movement, the initial magnitude of the variations of a BET company’s shares will be higher than for smaller companies outside the index. Its presence in a blue chip index tends to reduce the impact of volatility induced by general market movements,” Dumitrescu said.