The Greek stock market is moving close to the high levels it recorded on September 11, the highest since October 2009. Since the beginning of the year it has risen by more than 25% and is performing better than the European markets, according to Alpha Bank.
The bank attributes the rise to the good performance of the Greek economy, the improvement in fiscal figures and the strong profitability of listed companies. Banks also play an important role, as they have a large weight in stock market indices.
Despite the rise, Alpha Bank estimates that Greek stocks are not expensive. Their valuations are more attractive than the Eurozone average. Thus, if corporate profitability continues to increase, there is room for further gains.
The foreigners' “double” interest
The increased interest of foreign investors is also having a positive effect, as the Greek market is moving into the developed markets category. FTSE Russell and STOXX already upgraded it in September 2026. MSCI has scheduled the upgrade for May 2027.
In this transitional period, as the bank notes, Greek stocks are being bought by both emerging-market investors and developed-market investors. This is also evident in the three largest Greek equity ETFs, which in August had inflows for a third consecutive month, despite the volatility in international markets.
Alpha Bank estimates that inflows will continue until the first quarter of 2027. From May 2027, when the upgrade by MSCI is completed, there may be limited outflows for a short period. The reason is that funds tracking emerging-market indices will sell Greek stocks.