ECONOMY

Foreign funds have eye on Athens bourse

Over 1 billion euros in foreign funds has flowed into the local stock market in the last 12 months, based on the official figures issued by Athens Exchanges SA, and most of it before the Greek bourse was taken off the list of developed markets to join the emerging ones.

While attention has focused on privatizations, bank share capital increases and the course of the budget, portfolio investments from abroad have soared in the last year, going some way to offset the capital flight seen in the period up to the summer of 2012.

ATHEX data showed that from August 2012 to August 2013 the net flow of investment capital into the Greek bourse (i.e. inflows minus outflows) was positive by 917.24 million euros. Adding the data recorded in the first 10 days of September reveals that over 1 billion euros has been entrusted to the local market.

This inflow is attributed to low stock prices and expectations of a major rebound, as well as to the prospect of ATHEX benefiting from its placement among the emerging markets, which is expected to result in inflows of up to 3 billion euros in total.