GENEVA--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, will announce the results of the November 2013 Semi-Annual Index Review for the MSCI Equity Indices – including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indices, the MSCI Global Value and Growth Indices, the MSCI Frontier Markets and MSCI Frontier Markets Small Cap Indices, the MSCI Frontier Emerging Markets Index, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indices, the MSCI Pan-Euro and MSCI Euro Indices, the MSCI US Equity Indices, the MSCI US REIT Index, and the MSCI China A Indices. All changes will be made as of the close of November 26, 2013.
MSCI will post the list of additions to and deletions from the indices for the November 2013 Semi-Annual Index Review on its web site, shortly after 11:00 p.m. Central European Time (CET) on November 7, 2013.
Greece is due to be reclassified as an Emerging Market by MSCI. MSCI will announce the results of the November 2013 review on Thursday 7 November, and the changes will come into effect after market close on Tuesday 26 November. Despite being the strongest EM market performer this year, Greek equities seem fairly priced.
We expect a number of stocks to be added to the MSCI EM index, effective 26 November 2013. We have a high degree of conviction that OTE Hellenic Telecom, OPAP, National Bank of Greece (NBG), Public Power Corporation (PPC), Titan Cement and Hellenic Petroleum will be among the additions. We have a medium degree of conviction on Jumbo and Folli Follie, and a low degree of conviction on three more stocks - Alpha Bank, Viohalco Copper, and Motor Oil.
How does Greece fit into the current EM equities universe?
We estimate that Greece will have a maximum weighting in the MSCI EM index of 0.419% and consequently will be negligible in any passive EM equity funds. This said, it will be a bigger constituent than in DM, where there are currently only two Greek stocks in the relevant index with a total weight of 0.02%.