Wednesday August 20, 2014 Search
Weather | Athens
29o C
23o 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)  
Bank of Cyprus sells Romanian hotel stake
Only fraction of debtors declare bank accounts to avert confiscation
Russian sanctions seen giving EU 6.7 billion hit in ING estimate
Greek firms see 30 pct rise in PayPal payments from abroad in 2014
Dutch spend 461,000 euros to fence off King´s Greek holiday home
The Dutch government paid 461,000 euros ($615,000) to erect a fence around King Willem-Alexander’s seaside villa in southern Greece, RTL News reported on Wednesday, drawing media criticism a...
Police detain suspects over Kardamyli double murder [Update]
Police investigating the murder of two men whose bodies were found dumped on Monday night in a ravine on the outskirts of Kalamata in the Peloponnese said on Wednesday that they had detained...
Inside News
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
SWIMMING
Silver for Greece in 5k team event at European Swimming Championships
Greece claimed the silver in the team 5 kilometer event at the 32nd European Swimming Championships in Berlin on Saturday. The Greek team of Spyros Gianniotis, Antonis Fokaidis and Kalliopi ...
Inside Sports
COMMENTARY
Logged out of reality
It is a global phenomenon, and we have yet to fully grasp its implications for democracy and the functionality of Western states. The Internet is a bottomless well of information and a vast ...
EDITORIAL
Manipulated institutions
Greece’s leftist opposition must not manipulate an institution as important as the President of the Republic for the sake of political ends. Regrettably, SYRIZA leader Alexis Tsipras appears...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Bank of Cyprus sells Romanian hotel stake
2. Dutch spend 461,000 euros to fence off King´s Greek holiday home
3. Police detain suspects over Kardamyli double murder [Update]
4. Only fraction of debtors declare bank accounts to avert confiscation
5. Russian sanctions seen giving EU 6.7 billion hit in ING estimate
6. Syrian chemicals were safely destroyed off Crete, says OPCW
more news
Today
This Week
1. Greek current account surplus widens in June
2. Two missing men found shot dead near Kalamata
3. Logged out of reality
4. Greek firms see 30 pct rise in PayPal payments from abroad in 2014
5. ECB in policy limbo, boxed in by its own plans
6. Greece to give children at primary school road safety lessons
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Samaras expects 'exceptionally important find' at Ancient Amphipolis
3. Rhodes villa built for Mussolini among properties Greek privatization fund is selling
4. Canada’s fiscal adjustment has lessons for Greece
5. Treating Amphipolis with care
6. Greece to offer law on restructuring bad loans next month
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.