Greece’s stock market was put under review for reclassification to emerging markets by MSCI Inc. (MSCI), a change that would make the European Union nation the first advanced country to be cut to developing status. The MSCI Greece Index (MXGR), which includes only two companies, is “structurally no longer in line with Developed Markets size requirements,” MSCI, whose stock indexes are tracked by investors with about $7 trillion in assets, said in a statement yesterday. The index provider said it may discontinue the calculation of the MSCI Greece Index should the stock valuations keep declining. The weight of the MSCI Greece Index in the MSCI World Index slid to 0.03 percent last month from 0.16 percent in May 2010. MSCI said it would consider shifting Greece to Standalone Market status should the country exit the euro and restrict investors to its equity market. The MSCI Greece Index fell 0.5 percent to 10.28 by 11:43 a.m. in Athens today, heading for its first decline in four days.
Source: Bloomberg
