(Aug 2): Greece’s return to the top flight of European markets has opened the door for some of its biggest companies to join the region’s benchmark stocks index.

Nine stocks, including four banks, will enter the Stoxx Europe 600 on Sept 21, the same date that the reclassification of Greece as a developed market takes effect, making its companies eligible for inclusion alongside names from 17 other countries, including the UK, Germany and France. Stoxx demoted Greece to an emerging market during the country’s debt crisis a decade ago.

Joining the index following Tuesday’s quarterly review are National Bank of Greece SA, Eurobank SA, Piraeus Bank SA, Alpha Bank SA, Metlen Energy & Metals plc, Public Power Corp SA, GEK Terna SA, Motor Oil Hellas Corinth Refineries SA and Jumbo SA. The four banks will in turn be added to the Euro Stoxx Banks index.

The milestone underscores the scale of the comeback staged by Greece since the crisis forced the stock exchange to close for five weeks in 2015. Improved public finances and a revived banking sector have lured investors back. Since the country regained investment grade status in 2023, the Athens Stock Exchange General Index has surged 186%, compared with 52% for the Stoxx 600.

Stoxx membership should attract even more money. According to calculations by analysts at JPMorgan Chase & Co, total flows into the nine stocks joining later this month should amount to more than US$1.1 billion (RM4.45 billion).

The Greek benchmark has already been one of the best performing European markets this year as its banks, which account for over 40% of the index, powered a 25% rally. Still, unlike most European peers, which have set new records this year, the Athens index remains far off its previous peak hit in 2007 before the global financial crisis, leaving potential for further gains. 

With a market capitalisation of US$213 billion, the Greek market also remains small when compared with the US$19 trillion Stoxx 600. The pan-European benchmark is home to the region’s biggest stocks like ASML Holding NV and HSBC Holdings plc. The UK is its biggest country member by weight, at 22%, followed by France at 14%.

Uploaded by Arion Yeow