ATHEX set to shake up indices to boost trade

Hellenic Exchanges Holdings SA, the operator of Greek financial markets, said it plans to revise bourse indices as of December 3 to boost trading. The changes will include increasing the number of companies in the FTSE/ATHEX 20 index of large companies to 25 from 20 and changing the index?s name to FTSE/ATHEX Large Cap to improve liquidity, the market operator said Tuesday in an e-mailed statement.

Turnover on the Athens exchange fell to 1.04 billion euros in June, the bourse said Tuesday, down 43 percent from a year earlier. The value of all stocks on the exchange now is 24.5 billion euros, half the 49 billion euros at the end of June last year. The FTSE/ATHEX index of mid-cap companies will be cut to 20 from 40 to increase the tradability of the index, according to the statement.

A new index for small companies, based on factors including fundamentals, will replace the FTSE/ATHEX Small-Cap Index that is based only on market capitalization, Hellenic Exchanges said. The market operator also plans to ease free-float rules so that companies whose free float falls below the minimum requirement of 15 percent following a restructuring, such as receiving a capital injection by way of an equity issue from the government, will be accepted into indices with its actual free float. [Bloomberg]