FTSE Russell has reclassified Greece’s stock market from advanced emerging market to developed market, effective in September. The change moves 62 Greek stocks into a new index group. STOXX also treats Greece as a developed market, which allows nine Greek companies into the STOXX Europe 600.
Record trading on Athens exchange
The reclassification drove heavy trading in Athens. The Athens Exchange recorded a closing-auction transaction value of 4.26 billion euros, a record, on the day the change was announced. The previous record was 3.03 billion euros, set in May 2008.
Athens Exchange Group chief executive Yianos Kontopoulos said the upgrade could broaden the international investor base and attract funds that track developed market indices.
A downgrade from 2013 reversed
MSCI downgraded Greece from developed market to advanced emerging market in 2013, during a major debt crisis. In March MSCI announced plans to return Greece to developed market status in May 2027.
Ratings agencies have also moved in Greece’s favour. Scope Ratings upgraded the sovereign from BBB to BBB+ with a stable outlook. Moody’s changed its outlook on the Baa3 rating from stable to positive in September.
Government urges continued reform
Finance Minister Kyriakos Pierrakakis said the rating decisions and the market upgrade show the country has become more resilient and credible. He said the government must keep fiscal discipline, encourage investment and carry out reforms to raise productivity and wages.
Related: Greek stocks move to developed market status at FTSE Russell · Jakarta index falls 5% on MSCI market-status review
Source: FTSE Russell
