Greek Recovery Makes Stocks World’s Best as Paulson Buys Greek stocks, once shunned by investors concerned that a default would force the nation out of the euro, are beating almost every market in the world as a six-year recession eases and new investors consider purchases. Since June 5, 2012, two weeks before MSCI Inc. gave notice it may reclassify Greece as an emerging market, the country’s ASE Index (ASE) has surged 146 percent, trimming the decline from its 2007 peak to 79 percent. The gains topped all 94 national benchmarks globally in the period, except Venezuela, according to data compiled by Bloomberg. Yields on Greece’s 10-year government bonds have dropped to 8.31 percent from a peak of 33.7 percent in March 2012. Paulson & Co. and JPMorgan Chase & Co. have bought shares as emerging-market funds including Renaissance Capital Holdings Ltd. and Templeton Emerging Markets Group expressed interest. JPMorgan’s Francesco Conte, who dumped Greek stocks from his European Small Cap Fund more than three years ago as the government’s budget deficit spiraled, has purchased stakes in retailer Jumbo SA (BELA) and jewelry maker Folli Follie SA after the world’s biggest sovereign debt restructuring ( Namitha Jagadeesh @Bloomberg)
Posted on: Fri, 01 Nov 2013 07:32:40 +0000
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