The recent upgrade of the Greek debt from Moody’s ratings has paved the way for his return Athens Shipowner in the ripe marketsaccording to brokerage analysts.
In recent weeks the market has been running with a basic catalyst its expected upgrade to developed and looking into the future, the possible upgrading of the Athens Stock Exchange in the developed market could be transformative.
But the new round of offensive duties imposed by the US has escalated the world trade war and triggered fears for economic deceleration and rise in inflation and changes the international investment landscapeaccording to analysts.
Upgrading from Moody΄s, it can also lead the FTSE to open the Athens Stock Exchange’s path to developed markets. Next Tuesday, April 8th, there will be FTSE intermediate information on the possible movement of Greece to developed markets from emerging markets.
Such a development will confirm the progress which has taken place in the critical figures of both the market and the Greek listed companies.
The Greek Stock Exchange is the Only Eurozone Stock Exchange degraded since 2013 and was found by the developed markets in the emerging.
On Wednesday, June 12, 2013, the Hellenic Stock Exchange was downgraded by the most important rating index in the world, MSCI, with 12 trillion assets. dollars, watched by the largest international houses. There has been no such degradation for any other stock markets.
ATHEX’s return In developed markets it is a bet For the Greek Stock Exchange, which it lost, due to the great financial crisis and the degradation of the country’s debt, its position on the indicators of developed markets, resulting in the Greek market only from the small “lake” of investment portfolios and Hedge funds that are located in adversely affects trading activity and shares’ valuations.
Upgrading will enhance the prestige and image of the ATHEX, attracting more investment funds. The listed ones will have access to more capital, investing in developed markets, enhancing the growth of the Greek economy.
The upgrade time appears to be counting now, as FTSE is expected to give the signal for its return to developed capital markets on April 8, which will be a milestone for the influx of capital investors. It is estimated that their amount will exceed 2 billion eurosgiving another significant impetus to the Greek stock market.
JP Morgan estimates that In the event of upgrading the Greek stock market, there will be $ 1.83 billion outflow due to exit from FTSE Emerging Market indicators and inflows of $ 1.75 billion. Due to entering the indicators from the FTSEDEVELOPED MARKET markers.
To the positives of the upgrade to mention and Difference of funds moving to emerging and developed markets. In the first category there are about 2 trillion. dollars and in developed about 15 trillion. So the “lake” of capital in developed markets is much larger.
FTSE and S&P have set it in the upgrade of developed markets in the developed markets, as they included it in the 2025 watchlist, when the final decision to return to the developed markets will be made.
It should be noted that ATHEX. receives Evaluations by three houses, MSCI the FTSE House and S&P Evaluation House. Each sets its own conditions and conditions for integration into mature markets. In a recent evaluation, MSCI did not incorporate the Greek stock market into a “Watch List for upgrading”.
It is worth noting that 70% of funds follow MSCI markersmaking upgrading from the MSCI House critical factor.
Many discussions have caused some exhibitions of some houses, such as JP Morgan, according to which Greece would be better to remain in emerging markets.
First in the village or last in the city? The “answer” of the CEO of the Athens Stock Exchange, Mr. G. Kontopoulos, which he likes to give is: “A Super League 2 team aimed at the Super League 1”.
Source: RES-EIA