With the Athens Stock Exchange’s capitalization approaching 100 billion euros and the market having at least 13 listed companies with a capitalization of more than 2 billion euros, the goal of joining the developed markets seems more and more achievable.
Therefore, the Athens Stock Exchange Group expects to receive next June the first signal for the change of the category, which, barring unforeseen circumstances, will be completed in 2025 – that is, at least one year from today.
The return to mature markets will mark the end of the multi-year “wandering” in emerging markets, with the Athens Stock Exchange returning to the “leading” markets for the first time since 2013.
Today, MSCI’s list of developed markets includes 23 countries, of which 16 are from Europe. Greece, therefore, wants to gradually become the 24th country – and the 17th European – to enter the “showcase” of the international stock markets.
The criteria
For this to happen, however, some very specific criteria must be met. The first, which concerns economic growth, seems to have already been fulfilled, as Greece has a gross per capita income of at least 25% higher than the lower limit of 12,695 dollars over the last three years.
The second concerns stocks. A little more “work” is needed here. And this, because the Athens Stock Exchange has five companies with a capitalization of 4 billion euros (as defined by MSCI).
The recent placements in GEK TERNA and HelleniQ Energy, as well as the disinvestment of the HFSF in the banks, have already significantly “upgraded” the free float. But any further rise is absolutely welcome. The same applies, to a large extent, on the marketability front.
Regarding the third criterion, which concerns accessibility, the Greek market shows quite satisfactory performances (access of foreign investors, transfer of foreign funds, stable operating framework, availability of investment tools). On the other hand, securities lending and open selling (shorting) are slightly lagging behind.
Taking into account all the above, there is moderate optimism that MSCI (the largest of the market rating agencies) will upgrade the Athens Stock Exchange in the upcoming review in June, so that the great comeback in mature markets is realized in 2025, which will open the door to even more institutional funds.
