After 12 years of presence in developed capital markets, the Athens Stock Exchange entered the category of emerging markets, according to MSCI indices. The market classification framework is described in detail in msci.com.
The weighting of the Greek index to the main MSCI Emerging Markets Index is 0.43%. Stocks included in MSCI Greece Emerging Markets and their relative weighting are: OPAP (betting company) – 18.01%, OTE (Greek Organization of Telecommunications) – 17.95%, NBG (National Bank of Greece) – 11.01%, Public Power Company – 9.4%, Piraeus Bank – 9.1%, Alpha Bank – 8.25%, Jumbo (retail trading of toys) – 7.9%, Titan cement – 7.8%, Greek Petroleum – 5.8% and Follie Follie – 4.9%.
If all passive management funds adjust their positions in accordance with MSCI indices, a capital inflow of 4.5 billion dollars is expected within a year. More analytically, from the 26th November ASE session, we should conclude the following:
- Foreign institutional investors had sold bank stocks due to haircut imposed on Greek Bonds and prolonged recession that lead banks to significant losses. However, both the process of bank recapitalization and their inclusion in MSCI index, highlight banks as top investment opportunities.
- It is assessed that mutual funds will take long positions in Titan, Jumbo, Follie – Follie and Greek Petroleum.
- MSCI Index is going to be extended including stocks of Motor Oil, Mytilinaios, Metka and Ellaktor.
- Foreign private equity and venture capital funds will participate as strategic investors in Gek – Terna, Terna Energy and EYDAP (Sewer Company)
It is worth noting that Athens Stock Exchange enters a new era, characterized of high volatility and fluctuations, as happens in all emerging markets. In addition, foreign investors are interested in investing in companies with significant growth potential.
A direct positioning in Greek Capital Market also constitutes a valuable option, since commissions and fees paid to mutual funds managers decline significantly. However, if you would like to invest individually, a trusted partner in Greece is indispensible to ensure the smooth progress of your investments.