Greek stocks find love as turnaround efforts pay off

Greek stocks are fast becoming a popular option for investors, with some expecting an upgrade to coveted developed-market status next year, as the economy outpaces its eurozone peers and bank stocks roar ahead.

The Athens General Stocks Index has risen 13.1% so far in 2024, building on a near 40% jump last year, and outperforming the Europe-wide STOXX 600's 7.7% gain this year.

Asset manager Amundi's Greek equities fund attracted net inflows of $2.9 million in November, its biggest in a year, according to data compiled by Morningstar.

"The economy is growing rapidly relative to the eurozone average and it does move the needle from an earnings growth potential point of view for these Greek companies," said Wim-Hein Pals, head of emerging markets equity at Robeco, which manages more than 10 billion euros in emerging market funds.

Greece has made a steady...