ATHEX on its way back to the developed markets’ fold
FTSE Russell announced late on Tuesday it has included the Athens Stock Exchange in the shortlist for upgrading, with the aim of returning it to the category of developed markets
Greece will be added to the Watch List for a possible upgrade from “Advanced Emerging” to “Developed Market” status.
According to the rating agency, Greece meets the following requirements for obtaining Developed Market status:
- The twenty-two quality criteria of the FTSE markets.
- The minimum market capitalisation and number of securities requirements, based on data as of June 28
- It has a ‘High’ rating of Gross National Income (GNI) per capita.
This development is excellent news for Greece, the Minister of National Economy and Finance Kostis Hatzidakis pointed out in a statement, emphasising that “it is a result of the positive developments in the economy, the positive prospects that are opening up but also the specific successful moves of the government in the field of privatisations.”
He also referred to “the increase in the share capital of PPC, the listing of the shares of the Athens International Airport in the Athens 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 Hellenic Financial Stability Fuind from the systemic banks and also the developments in relation to the fifth banking pillar.”
Hatzidakis pointed out that “the Athens Stock Exchange is heading towards joining the world’s leading capital markets. And this creates conditions for additional funds coming into the country, improvement of financing conditions for listed companies, productive investments and new jobs.”
“For us, in the last two years, the return of the Athens Stock Exchange to developed markets is our central strategic goal, for which we are working systematically and coordinated,” said Giannos Kontopoulos, Managing Director of the Athens Stock Exchange Group.
“This development comes after eight years of staying in the category of emerging markets, and confirms the progress that has been made in the critical figures of both our market and Greek listed companies,” he added on Wednesday.
In August ATHEX started looking forward to returning to the developed markets, as Standard & Poor’s included it in the 2025 Watchlist, when the final decision will be made to return to the developed markets.
After the recovery of investment level for the Greek sovereign rating, an important landmark for the Athens Stock Exchange too, comes the bourse’s upgrading to the category of developed markets.
It should be noted that ATHEX receives evaluations from three agencies, i.e. MSCI, FTSE and S&P. Each one sets its own conditions for integration into mature markets. In a recent evaluation, MSCI did not incorporate the Greek stock market into a “Watch List for Upgrading.”
