ECONOMY

MSCI grading and ERT take toll on stocks

The demotion of the Greek bourse from a developed market to a emerging one by MSCI, and the political repercussions from the temporary shutdown of the state broadcaster inflicted a fresh decline on Greek stocks on Wednesday.

The benchmark index piled up losses of 14.5 percent in the last eight sessions, evaporating all the gains of 2013.

The Athens Exchange (ATHEX) general index closed at 867.08 points, falling by 3.21 percent from Tuesday’s 895.86 points. The large-cap FTSE/ATHEX-25 index contracted by 3.67 percent to 293.53 points.

It remains to be seen whether the MSCI relegation of ATHEX’s status proves to be to the benefit of the market. While many institutional investors will depart as their rules prevent them from investing in emerging markets, others may see new opportunities arise on the Athens bourse.

Most blue chips headed south on Wednesday, led by Marfin Investment Group (down 10.26 percent). National Bank bucked the trend to record a rise of 3.51 percent.

In total, 49 stocks posted gains, 96 registered losses and 25 remained unchanged.

Turnover came to 80.6 million euros, down from Tuesday’s 89.9 million euros.