Bourse retains ‘developed’ status
The Athens Exchange (ATHEX) will hold onto its ranking as a developed market until at least September next year but still faces the risk of falling into the emerging market basket, according to index compiler FTSE. The loss of developed market status for ATHEX would result in a large number of foreign investors who track mature funds pulling out of local stocks. «Changes recently introduced by Greece to take into account the outstanding FTSE quality of market criteria have yet to be fully adopted by the market,» FTSE said in a statement. «Greece will therefore remain a developed market but will remain on the watch list and be reviewed again in September 2009.» FTSE, which creates and manages indices across the world, ranks markets depending on their ability to meet its list of criteria. According to its September assessment, Greece falls short of meeting FTSE standards regarding stock lending, short selling, off-exchange transactions and in the account facilities offered to international investors. Foreign investors held 51.5 percent of Greek equities at the end of June, down from 53.5 percent in the previous month. Spyros Kapralos, the president of ATHEX, described the news as positive, adding that it is important investors learn about the improvements that have taken place on the domestic bourse. «During a difficult time period for financial markets internationally, today’s announcement by FTSE that our market keeps its developed status is a positive note,» he said. As global equity markets retreat under the weight of the financial and credit crisis, the Athens bourse’s benchmark general index has given up almost 20 percent in the last three months. [email protected]
