Athens Stock Exchange faces volatility amid index rebalancing

The Athens Stock Exchange is facing a highly volatile period marked by significant index rebalancing and global economic pressures. The market is preparing for major structural changes as FTSE Russell and STOXX reclassify the Greek market, moving it from emerging to developed status. This transition is expected to trigger high trading volumes, with analysts predicting Friday's turnover could exceed €2 billion due to passive fund adjustments.

Recent sessions have seen the General Index struggle, dropping 1.16% to close near 2,694 points. This downturn is attributed to rising oil prices, which fuel inflation concerns, and global market jitters regarding US Federal Reserve interest rate decisions. Despite the downward pressure, certain sectors show resilience; Morgan Stanley has issued an ‘Overweight’ recommendation for Alpha Bank and DEH, noting increased investor interest as Greece integrates into STOXX indices.

To manage the anticipated surge in order volume during the critical closing phase on Friday, the Athens Stock Exchange management has extended the ‘At the Close’ (ATC) session by ten minutes, concluding at 17:30 instead of the usual 17:20.