Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that the new indices were developed to reflect long-term investment trends in the Central and Eastern European region (CEE).
These long-lasting trends include climate change, geopolitical risks, supply chain security and inflation, some of which are mutually reinforcing, the exchange writes, adding that CEE has a significantly higher growth rate compared to the Eurozone and the catch-up potential in an upswing phase is accordingly greater in this region.
The CECE Reshoring contains companies from the Emerging Europe region that have the potential to benefit from the relocation or diversification of global supply chains to regions that offer both security and attractive framework conditions for manufacturing companies. Pharmaceutical companies are strongly represented in the CECE RESH. These include, for example, the Hungarian Gedeon Richter Plc, which is a major player in women’s health worldwide.
The CECE Commodity Producers is composed of companies in the Emerging Europe region that are active in the production, processing or distribution of commodities. These companies are generally better able to pass on inflationary pressures. Part of the CECE CMDTY are, for example, the Polish energy company Orlen SA, which supplies around 100 million Europeans with energy, as well as KGHM SA, also based in Poland. The latter is one of the largest silver producers in the world. With its copper production, KGHM also supplies an essential raw material for the e-mobility industry.
The CECE Clean Energy (CECE CLEAN) consists of Austrian and Eastern European companies that use low-emission sources – such as wind, solar, hydro or nuclear power – to produce energy and thus targets the increasing demand for climate-neutral energy production. In addition to Verbund AG and EVN AG, Hidroelectrica SA is also included in the index: The IPO of the most important Romanian energy producer (187 hydropower plants) was the largest in Europe so far this year with an issue volume of EUR1.9 billion.
The indices each comprise the largest and most liquid companies in the corresponding thematic area. Those companies with the highest free float capitalisation have the highest weight in the index, whereby the maximum weight per index member is limited to 25 per cent.
