Wednesday Jan 28, 2015 Search
Weather | Athens
13o C
7o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece cut to emerging market at MSCI in world first

By Tom Stoukas

Greece became the first developed nation to be downgraded to emerging-market status by index provider MSCI Inc. (MSCI) after the country’s stocks plunged 91 percent since 2007.

The MSCI Greece Index will no longer be classified as a developed market as it failed to meet criteria regarding securities borrowing and lending facilities, short selling and transferability, New York-based MSCI, whose equity indexes are tracked by investors with about $7 trillion in assets, said in a statement. The gauge consists of two companies, Hellenic Telecommunications Organization SA, the country’s largest phone operator, and Opap SA, Greece’s biggest gambling firm.

Locked out of bond markets since April 2010, Greece was forced to accept two European Union-led bailout packages as public opposition to pension and wage cuts derailed the pace of promised economic reforms. The benchmark ASE Index (ASE), which has 60 members, sank 83 percent since October 2007.

MSCI put Greece under review for downgrade in June 2012, saying restrictions on in-kind transfers, off-exchange transactions, stock lending and short-selling stopped Greece from having a fully functional market. The probability of a demotion increased after Coca-Cola HBC AG, which previously made up almost a quarter of the Athens Stock Exchange by weight, switched its primary listing to London in April.

The index provider upgraded Greece to developed-market status in 2001. Downgrades could lead investors who follow MSCI’s gauges to sell the nations’ equities. The weight of Greek companies in the MSCI World Index has tumbled to 0.01 percent from 0.16 percent in May 2010, according to data compiled by Bloomberg.

MSCI’s reclassification of Greece follows Russell Investments, which advises funds with $2.4 trillion in assets. Russell said in March it will downgrade Greece to an emerging from a developed market after it failed economic and operational-risk assessments.

The benchmark ASE has fallen 9.2 percent this week as Greece failed to win any bids in a sale of the country’s gas monopoly. The unsuccessful attempt to sell Depa SA dented Greece’s state-asset sales program, which underpins 240 billion euros ($318 billion) of bailout loans from the euro area and International Monetary Fund.

The ASE has rallied 88 percent since June 5, 2012, as Greek Prime Minister Antonis Samaras’s New Democracy party formed a coalition government after finishing first in repeat elections and European Central Bank President Mario Draghi vowed to do whatever it takes to preserve the euro.

[Bloomberg]

ekathimerini.com , Wednesday June 12, 2013 (01:23)  
Greek tourism rise outshines global gains
Dritsas announces cancellation of OLP sale
Electric shock in energy industry
Property levies inflict serious blow to housing market
Police looking for two more suspects in Xeros case
Two people arrested last week on suspicion of being accomplices of Savvas Xeros and assisting him in plans to help members of the Conspiracy of the Cells of Fire terrorist group escape from ...
Tsipras unveils anti-austerity cabinet
Greece’s new SYRIZA-led coalition government was sworn in on Tuesday with economist Yanis Varoufakis taking the crucial post of finance minister in a slimmer cabinet including members of the...
Inside News
SOCCER
PAOK strikes deal with Portugal´s Ricardo Costa
PAOK announced on Tuesday its agreement with Portuguese international defender Ricardo Costa. The Thessaloniki club added that the player is expected on Wednesday to undergo a medical test a...
BASKETBALL
Basket League favorites survive challenges on the road
PAOK consolidated its position in the top three of the Basket League with a triumph at AGO Rethymnou on Saturday, while Olympiakos and Panathinaikos emerged victorious from their tough away ...
Inside Sports
COMMENTARY
Greece, where everyone´s a winner
Whether a tradition or simply a bad habit, we have trouble finding a loser in any electoral race, a party leader who will openly concede defeat without trying to mitigate it with excuses. Th...
EDITORIAL
Political faux pas
Democracies have rules and institutions that must be respected and served by all who represent them. Most people can appreciate that politicians who have worked hard for the past two-and-a-h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PAOK strikes deal with Portugal´s Ricardo Costa
2. Greek tourism rise outshines global gains
3. Dritsas announces cancellation of OLP sale
4. Electric shock in energy industry
5. Property levies inflict serious blow to housing market
6. Uncertainty on new tax system
more news
Today
This Week
1. Greek Elections 2015: Forming a government, Part 1 | LIVE
2. Greece, where everyone's a winner
3. Three days of mourning declared over death of two Greek pilots in Spain
4. Greek uncertainty weighs on low-rated eurozone bonds
5. Political faux pas
6. Europe stocks fall from seven-year high; Greek bonds drop
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. Unsupervised voting
6. QE exclusion a ‘de facto Grexit’
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.