Global index provider FTSE Russell has informed the public that it has reclassified Poland from Emerging Market to Developed Market status on 24 September 2018. With the upgrade, Poland is classified as one of the 25 most advanced global economies including the USA, UK, Germany, France, Japan, Australia. Furthermore, Poland is the first country in almost a decade, and the first Central and Eastern European country to be upgraded to Developed Market status.
The upgrade of Poland to Developed Market status represents an acknowledgement of the progress of the Polish economy and capital markets and is a major step in their development. Poland has all the features of a developed market, including secure trading and post-trade services, as well as advanced infrastructure. GPW uses a state-of-the-art trading system and its listed companies meet the highest standards of corporate governance and disclosure requirements.
Poland’s promotion today to Developed market status within FTSE Russell’s global equity benchmarks is a significant achievement. The Polish Ministry of Finance and the Warsaw Stock Exchange have long been committed to improving Poland’s capital markets infrastructure and strengthen its economy and today marks the culmination of their efforts to meet the rigorous criteria needed for this classification,” said Reza Ghassemieh, Chief Research Officer, FTSE Russell.
The dynamic development of the Polish capital market has led to its upgrade to Developed Market status, which represents a fundamental change in the perception of Poland among global investors. Poland’s reclassification will spark the interest of new investors in Polish issuers and open enormous opportunities for the entire capital market. I do believe that in the long term it will attract bigger capital inflows to GPW,” added Marek Dietl, President of the Warsaw Stock Exchange.
FTSE Russell reviews the classification in view of the regulatory environment, infrastructure and quality of the capital market, the depository and clearing system, as well as the status of the derivatives market.
FTSE Russell indices serve as a benchmark for leading global investment funds. The classification results in moving companies from FTSE indices of Emerging Markets to FTSE indices of Developed Markets.
The final list of 37 Polish companies to be included in the Developed Market indices (by FTSE Russell size category) was published on 25 August:
- PKO Bank Polski
- PKN Orlen, Grupa Lotos, PGE, PGNiG, KGHM Polska, Bank Pekao, PZU, BZ WBK, mBank, LPP, Dino Polska, CD Projekt, Cyfrowy Polsat.
- Bank Millennium, AmRest Holdings, Bank Handlowy, JSW, Alior Bank, CCC, Play Communications, Orange Polska, Grupa Azoty, Enea, Tauron Polska Energia, Kernel Holding, Kruk, Asseco Poland, Budimex, Eurocash, Ciech, Energa, PKP Cargo, Lubelski Węgiel Bogdanka, GPW, Boryszew, Neuca.
FTSE Russell announced the upgrade of Poland from Emerging Market to Developed Market status on 29 September 2017, as a result of the annual classification of countries. The decision took effect in conjunction with the FTSE Global Equity Index Series semi-annual review on 24 September 2018.