FTSE Group today released its annual review of country classification into developed, advanced emerging and secondary emerging market categories within its FTSE Global Equity Index Series.
Those indexes are used by institutional investors worldwide to benchmark portfolios. The review includes a watchlist of countries under review for promotion or demotion.
Israel will be promoted to developed status as of June 2008, and a new FTSE index for developed markets in Europe, Middle East and Africa will be released by investors wanting to add Israel to existing developed Europe portfolios.
Hungary and Poland will be promoted to advanced emerging status from secondary emerging status in June 2008, while Pakistan will be removed from the FTSE GEIS, as its stock market fails to meet minimum entry requirements.
Greece remains on watch for possible demotion to advanced emerging from developed status due to Greek restrictions for international investors. A final decision about Greece will be made in September 2008.
Other countries on FTSEs watchlist include South Korea and Taiwan, which may be promoted to developed from advanced emerging status, while China A share may be included in the FTSE GEIS.