Metlen: The first Greek multinational in the FTSE 100 – What the company's presence in the British index means?

The entry into the FTSE 100 is not just another step in internationalization. It marks the recognition of Metlen as a player with European weight in the energy, metals and defense sectors.

This move paves the way for new investment inflows from international funds and institutional investors, as the largest funds and ETFs in the world are mandatorily placed in the index shares.

JP Morgan estimates that the net positive effect from passive funds may exceed $400 million. In addition, shares in the FTSE 100 have higher trading volumes, and therefore greater liquidity.

This helps the company in future capital increases, but also investors who can enter and exit the stock more easily.

Moreover, the presence in the index is considered a "seal of quality". It often leads to an improvement in valuation (valuation premium), because the stock gains greater visibility and attracts investors who would not otherwise have identified it.

In addition, it is also a "passport" to the global market as major international media (Financial Times, Bloomberg, Reuters) and rating agencies closely monitor the index. Thus, the company gains recognition and credibility at a global level.

Many institutional investors also have rules that allow them to invest only in "blue chip" companies such as those in the FTSE 100. Therefore, Metlen gains access to funds that until yesterday could not invest in it. It is worth noting that the FTSE 100 is considered equivalent to the US S&P 500 or Germany's DAX.