The qualitative characteristics that make up the stock market narrative since the beginning of the year have led Athens to behave as a mature market amid expectations that it will formally receive MSCI approval in the first half of 2024.
After 130 trading sessions in 2023, the general index has risen 42.35% and has returned to the levels recorded in April 2014. The capitalization stands at 88.942 billion euros, levels last seen in October 2008.
However, the upward rally that began in October 2022 and peaked in the first half of this year is due to a series of decisive developments that changed the image of the stock market.
First are investors’ expectations for the achievement of the investment grade status on October 20 by Standard & Poor’s. This in combination with the continuation of the reforms after the re-election of the New Democracy, an increasing number of foreign funds continue to invest in the Greek stock market.
After regaining the investment grade credit rating, Athens will attract foreign funds that manage capitals amounting to 53 trillion dollars worldwide compared to 6 trillion dollars which are currently the funds that invest a very small part of their reserves in Athens.
Moreover, MSCI is expected to give the green light over the next weeks for the Greek stock market to be put on a watch list and get upgraded from mature to emerging market for the first time since the summer of 2013.
Meanwhile, listed companies posted the highest corporate profits (10.8 billion euros) in the history of the stock exchange last year and continue at a similar pace this year as well.
