How a market upgrade would change the MSCI Standard index

Three Greek stocks would lose their place in the main MSCI Greece Standard index if Greece had already been upgraded to developed-market status. That is the finding of a new simulation published by MSCI alongside the results of its November quarterly review.

The simulation applies the rules for developed markets. Greek stocks are included in the construction of the MSCI Europe index and assessed against developed Europe as a whole. The reclassification will take place in a single step, at the May 2027 review.

According to the data, the MSCI Greece Standard index would have seven constituents, compared with the ten it will have as an emerging market after the November review: Eurobank, National Bank of Greece, Piraeus Bank, Alpha Bank, Public Power Corp, Motor Oil and OTE.

None would be classified as large-cap. Eurobank and National Bank of Greece are currently large-cap stocks in emerging-market indices, but would be mid-cap stocks in developed Europe, where the size thresholds are significantly higher.

GEK Terna and Jumbo, currently mid-cap stocks, would move down to small-cap indices. By contrast, Cenergy, which is not currently included in any MSCI index, would enter the MSCI Greece Small Cap index.

As for Allwyn, which currently makes up the tenth constituent of the MSCI Standard index, it would not be included in any Greek index.

Difference between actual and simulated classification  |  Source: MSCI Greece IMI