FTSE Russell upgrades Poland from emerging to developed market
FTSE Russell, the index provider, in the early hours of Saturday announced it was moving Poland from the category of emerging markets to developed ones.
The move came as the agency announced its annual classification of countries by development status. Poland thus becomes a developed market, having so far been categorised as an emerging market.
The country joins the 24 most developed markets, such as Germany, France, Japan, Australia and the US, among others.
"Poland is the first country from Central and Eastern Europe to qualify for this club", Poland's Stock Exchange (GPW) said in a statement.
When revising its classification, FTSE Russell relies on such factors as the regulatory environment, infrastructure and the quality of the capital market, the design of the deposit and clearing system, or the growth of the derivatives market, among other aspects.
"The upgrade of Poland's status to a developed market is a sign of appreciation for the expansion of the Polish economy and our capital market, as well as an important step in the latter's development", GPW CEO Marek Dietl said.
The official added that Poland enjoyed all the benefits of a developed market, such as security of trade and an advanced infrastructure, while the GPW had a modern transactional system and the stock-listed companies met high standards for corporate governance and communication policy.
Meanwhile, Poland's fast-growing economy is also attracting global investors.
"The country's inclusion among Developed Markets also means a big challenge and rising expectations for the capital market, which we are prepared to fulfil", Dietl declared.
FTSE Russell's decision on Poland could mean Polish companies will be moved from indices grouping emerging-market firms to those for developed-market companies.
FTSE Russell's indices are used as benchmarks by the world's leading global investment funds.
Meanwhile, MSCI, another provider of investment support tools, retains its assessment of Poland as an emerging market, which notably stimulates investor interest in the country.
FTSE Russell's upgrade of Poland's status takes effect in September 2018, giving the country an interim period of one year to adjust to the change.
Total stocks turnover on the GPW's main market reached PLN 18.5 billion (EUR 4.3 billion) in August, an 18.3 percent increase on the same month the year before. (PAP)
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