Three lenders set for MSCI ejection

The steep losses of Greek bank stocks since May, which have led to them halving in value, will likely see them relegated from international indexes, and therefore dropping off the radar of major foreign portfolios.

According to a Societe Generale report, Greek lenders Eurobank, Piraeus and National are expected to be removed from the MSCI Standard Emerging Markets index in its planned November 13 rebalancing. The restructured index will apply from end-November.

According to the French bank's estimates, this development will lead to a major sell-off in the three stocks estimated at a total of $110.9 million, with Eurobank losing some $52.73 million from its capitalization, Piraeus conceding $17.59 million and National parting with a projected $39.87 million.

SocGen argues that Eurobank will drop out of the MSCI Standard due to its bank segment being reduced, while...