The MSCI Greece index will feature fewer constituents in the developed market category compared to its current composition. Specifically, according to projections by MSCI, the initial stocks expected to meet the threshold are the four systemic banks and OPAP. However, it must be noted that this analysis was conducted using prices from October 15, 2025, rather than current valuations. Since that date, several stocks have recorded a significant rally; for instance, PPC (DEH), GEK TERNA, and Motor Oil have seen gains exceeding 30%. Special mention should be made of PPC, as the index provider's analysis on October 15 placed it below both OPAP—which secured a "ticket"—and OTE. Today, its valuation surpasses both companies. Furthermore, UniCredit has increased its stake in Alpha Bank, affecting free-float valuation, while OPAP is preparing for a headquarters relocation and merger with Allwyn, raising questions about how it will be treated by the index provider.
Significant reduction in weighting
On the other hand, a critical factor is that Greece's weighting is set to decrease to 0.06% from the current 0.57%. Essentially, while MSCI Greece currently holds a 0.57% weight in the MSCI Emerging Markets Index, it will transition to a mere 0.06% within the MSCI World Index. This would give Greece a slightly higher weighting than Portugal, which also features five stocks, and a similar weighting to Austria, which currently has four constituents.
Small Cap constituents
Based on the current analysis, in addition to the five stocks in the MSCI Standard Index, another 15 will be relegated to the Small Cap Index. This represents five fewer stocks than the current small-cap lineup. The Small Cap index is expected to include OTE, PPC, Jumbo, Athens International Airport, Titan, Cenergy, Motor Oil, HelleniQ Energy, GEK TERNA, Intralot, Viohalco, Aktor, Lamda, Aegean, and Sarantis. It is recalled that yesterday, the index provider announced the start of a consultation regarding the potential upgrade of Greece from "Emerging Market" to "Developed Market," with a target implementation date during the August 2026 Index Review.
Progress in compliance standards
Within the framework of the MSCI 2025 Market Classification Review, MSCI acknowledged that the Greek market has made significant progress in complying with the accessibility standards typically observed in European Developed Markets. Additionally, Greece already meets the Economic Development criteria required for Developed Market status.
However, until recently, Greece failed to meet the "Size and Liquidity Stability" rule, which requires at least five companies to meet the Developed Market Index criteria in each of the last eight Index Reviews before an upgrade can be considered. MSCI is inviting market participants to provide feedback on the upgrade proposal by March 16, 2026, and will announce its final decision by March 31, 2026.
Giorgos Katikas
georgekatikas@gmail.com
www.bankingnews.gr
Σχόλια αναγνωστών