Poland has been upgraded from Emerging Markets (developing markets) to Developed Markets.
The FTSE Russel global agency index made the decision a year ago but the update will finally come into effect on September 21st. Although FTSE Russel is the first agency to acknowledge Poland’s advancement as a developed market, this update will have real consequences for the Polish capital market.
The presence of Polish companies could generate a significant amount of foreign capital, which could increase the demand for shares on the Warsaw Stock Exchange (GPW). Companies listed on the GPW will now find themselves among foreign companies such as Apple, Amazon, JP Morgan or Exxon.
Although the update is mostly favorable for Poland, Polish companies will find themselves facing much stronger competition (…) Apple itself has 15 times more influence over the index than Poland
Although the update is mostly favorable for Poland, Polish companies will find themselves facing much stronger competition. The FTSE Developed Market index is dominated by American companies, which possess more than 60 percent of the weighted allotment.
Apple itself has 15 times more influence over the index than Poland. Poland will have 0.154 percent compared to its 1.37 percent among Developing Markets. A country such as Germany holds 3.03 percent of allotment. “Poland will be a Lilliputian among giants,” writes bankier.pl.
Eight Polish companies: PKO BP, Orlen, PZU, Santander Bank Polska, Pekao, KGHM, LPP and CD Projekt have also advanced to Stoxx Europe 600 index.