Bourse status revision forces stock losses

Most Greek stocks headed south on Wednesday following the release of a report by the Organization for Economic Cooperation and Development containing the forecast that the Greek economy will continue to contract next year, along with news of MSCI’s intention to revise the local bourse’s developed status.

The Athens Exchange general index closed at 1,008.72 points, retreating 2.80 percent from Tuesday’s 1,037.83 points. The large-cap FTSE/ATHEX-25 index contracted by 2.77 percent to end at 340.33 points.

The eviction of National Bank shares from the Stoxx 600 Europe index and expectations that MSCI will change Greece’s status from developed to emerging market are likely to see foreign institutional investors reduce their positions on the local bourse in the short term.

Alpha Bank led the losers among blue chips, giving up 7.52 percent, while Jumbo was the only large-cap to go up, adding 2.84 percent.

In total 48 stocks reported gains, 95 suffered losses and 19 remained unchanged. Turnover amounted to 57.8 million euros, up from the month’s low of 53.6 million registered on Tuesday.

Thursday sees the return of the National Bank’s share after its reverse split, which should boost turnover. The starting price will be 4.53 euros per share.