The positive views on the Greek economy and its banks by various foreign firms, including rating agency DBRS Morningstar, continue to feed traders' buying interest, which is also trickling down to mid- and small-caps. This carried the benchmark through to another day of growth on Wednesday, on higher trading volume too thanks to a number of packages that changed hands.
The Greek stock market appeared unaffected on Monday by the growth momentum observed by its international peers, and recorded a small decline on fairly low turnover. The likely reason was the decision by DBRS Morningstar last Friday not to upgrade Greece's rating, opting instead to upgrade only the country's outlook to "positive."
Canada-based rating agency DBRS upgraded Greece's outlook from stable to positive on Friday, but stopped short of upgrading its credit rating from BB (low).
Therefore the country's rating remained three notches below the coveted investment grade, where DBRS had placed Greece in its previous review last May.
Expectations are growing that credit rating upgrades will be speeded up in the next few weeks, following the European Commission's approval of the Hercules plan to reduce bad loans, the government's pro-business reforms and the improvement of the Greek debt's profile following the strong bond rally.
Rating agencies pointed to a positive outlook after New Democracy's victory in Sunday's election.
"Under the leadership of the center-right party New Democracy, the incoming government's measures could boost Greece's economic growth potential and alleviate outstanding socioeconomic challenges," S&P Global said on Monday.