"The FTSE Russell will add Greece for possible promotion from the advanced emerging (EM) to developed markets (DM) category," JP Morgan said, adding that "the UK house will provide a new update in March 2025 on Greece's tracking progress. as part of the interim FTSE Equity Country Classification." It further states that "Greece meets all 22 FTSE quality matrix criteria required to obtain developed market status and also meets the requirements for minimum investable market capitalisation, minimum number of securities, and gross national income per capita criteria.".
COMPANY PARTICIPATION
JP Morgan predicts that, if and when Greece is upgraded, of the 33 companies that make up the holdings in the FTSE Emerging Market index, it will see a reduction to 29 companies in the FTSE Developed Market index. Nine companies will participate in the FTSE Developed Market Standard index and 20 companies in the FTSE Developed Market Small Cap index. In the current index format, the structure is reversed, with 29 holdings in the large Standard index and 4 in the small Small Cap index.
INFLOWS - OUTFLOWS
The stocks that will have the highest inflows will be:
- National Bank: $5.5 million
- Eurobank: $4.9 million
- Piraeus Bank: $3.7 million
- Metlen Energy & Metals: $3.6 million
- Alpha Bank: $3.1 million
- OTE: $2.9 million
- OPAP: $2.9 million
- Jumbo: $2.8 million
- PPC: $2.3 million.
OUTFLOWS
- Motor Oil: $9.3 million
- Terna Energy: $8 million
- GEK TERNA: $7.6 million
- Optima Bank: $6.6 million.
WEIGHTING
Analysts estimate that the country's weighting in the developed market index will be 20 basis points (0.20%) compared to 52 basis points (0.52%), which is now the weighting in the emerging market index. JPM estimates that there will be an outflow of $1.83 billion from the FTSE EM index from passive managers (index trackers) and an inflow from passive managers of $1.75 billion from the FTSE DM index (index trackers), with a net outflow of approximately $75 million to equities
