The Greek stock market has been added to the Watch List of FTSE Russell, for a possible upgrade from the status of “Advanced Emerging” to that of “Developed Market”.
According to the house, Greece meets the following conditions for obtaining Developed Market status within the FTSE classification framework:
• the 22 quality criteria of the FTSE markets.
• the minimum market capitalization requirements and security measurements based on June 28, 2024 closing data and
• the limit on Gross National Income per capita (Atlas Method) to be at “High”.
However, the house puts an asterisk, regarding the evaluation of the Greek debt. As it states, Greece maintains a “Speculative” (non-investment grade) credit rating based on the lowest credit risk rating from the three main rating agencies. For its classification in the developed markets, however, the investment grade is required, which will not have negative prospects.
Therefore, following the recommendations received from the FTSE Equity Country Classification Advisory, the house’s Policy Committee and Governance Council decided to add Greece to the watch list as part of the September 2024 annual market review for possible reclassification from Advanced Emerging in Developed Markets.
FTSE Russell will provide an update on Greece’s ranking in the March 2025 interim update.
Hatzidakis: The upgrade of the Stock Exchange ranking is excellent news for Greece
Immediately after the announcement of the inclusion in the AXA watch list by FTSE Russell, the Minister of National Economy and Finance Kostis Hatzidakis made the following statement:
“The upgrading of the ranking of the Athens Stock Exchange with the aim of returning it to the category of developed markets by FTSE Russell is excellent news for Greece. It is a result of the positive developments in the economy, the positive prospects that are opening up and also the specific successful moves of the government in the field of privatizations.
I mention, for example, the increase in the share capital of PPC, the introduction of the shares of the airport El. Venizelos in the Hellenic Stock Exchange, the sale of Helleniq Energy shares. And above all – due to the size and special weight of the banks in the economy – the completion of the disinvestment of the HFSF from the systemic banks and also the developments in relation to the fifth banking pillar.
The Greek Stock Exchange is on its way to joining the world’s leading capital markets. And this creates conditions for further introduction of capital into the country, improvement of financing conditions for listed companies, productive investments and new jobs”, concluded the minister.
SOURCE: ot.gr
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