The factors behind bourse’s growth

The factors behind bourse’s growth

After many years in the shadows, the Greek stock market has suddenly started to draw interest again. Not only because the benchmark has reached 1,100 points, but also because the last few days have seen battles on the board for control of some listed companies.

Greece has been strongly on the investors’ radar, with the Athens Stock Exchange registering impressive performances, the highest since the beginning of 2023 among all international indices (+18%), with a wave of capital inflows reviving the market, thanks to renewed activity on the deals’ front that has awakened investment interest.

The factors that are boosting Greek stocks are the supportive macroeconomic environment – partly thanks to the Recovery Fund flows (with the economy expected to keep outperforming the eurozone) – the recovery of investment grade, the upgrading of the local bourse to the category of developed markets from emerging markets where it had been downgraded since 2013, as well as the low political risk.

Although the electoral process is likely to be time-consuming, causing market volatility, rating agencies and international firms do not appear concerned about the result, believing the next government will continue on the same fiscal policy path.

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