Tuesday April 28, 2015 Search
Weather | Athens
14o C
09o 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)  
Local retailers bracing for yet another Sunday battle
Supermarket sector sees turnover decline and more concentration
Athens tourism should grow unless stability is threatened
Reuters poll: 40 pct chance of a Greek eurozone exit
Erdogan raps new Turkish Cypriot leader
Turkish President Recep Tayyip Erdogan became embroiled with a war of words with the newly elected leader of northern Cyprus on Monday, bluntly telling him he should be careful what says. Mu...
University rectors and mayors stall over cash
As the government scrambles to raise the cash to cover its pending obligations in the coming months, it remained unclear on Monday whether university rectors and local authorities would comp...
Inside News
BASKETBALL
Rethymno defeats in-form AEK on Crete
AGO Rethymnou put an end to a positive string of results for in-form AEK, while PAOK survived a strong challenge by Kolossos Rhodes in Thessaloniki in yet another exciting weekend of basketb...
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
Inside Sports
ANALYSIS
If Greece falls, no one wants their prints on the murder weapon
"We're going bust." "No, you're not." "You're strangling us." "No we're not." "You owe us for World War Two." "We gave already." The game of chicken between Greece and its international cred...
COMMENTARY
Reaching crunch time
Several cabinet ministers and MPs are no longer hiding it: They either openly admit that they are promoting the drachma or they murmur things like, “Why not the drachma?” Some go even furthe...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Rethymno defeats in-form AEK on Crete
2. Local retailers bracing for yet another Sunday battle
3. Supermarket sector sees turnover decline and more concentration
4. Athens tourism should grow unless stability is threatened
5. Erdogan raps new Turkish Cypriot leader
6. Reuters poll: 40 pct chance of a Greek eurozone exit
more news
Today
This Week
1. Greece’s day of reckoning inches closer as debt payments loom
2. Tsipras reshuffles negotiating team after Riga debacle
3. Pensions will not be cut, insists social insurance chief
4. Berlin silent on content of Merkel-Tsipras chat amid claims of 'dramatic' situation
5. Anastasiades, Akinci speak and look towards fresh push in peace talks
6. ECB seen going all the way on QE as economists doubt taper
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. Denialism
4. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
5. Leaving the past in the past
6. Varoufakis warns of Grexit contagion
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.