Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Sell-offs, Eurobank and bonds bolster bourse

By Anestis Dokas

The Athens bourse’s start to the year has been even better than the glorious period of 1999, with the benchmark index posting gains of over 10 percent in the first four sessions against a 9.8 percent rise in the same period 15 years ago.

Very swiftly and using funds left over from the last few sessions of 2013, the local stock market has once again outperformed global markets, as with just the first 10 days of the year gone, the general index at the Athinon Avenue institution has already hit 1,300 points, while international agencies had previously predicted a benchmark high of just 1,400-1,450 points for the whole of the year.

From the depths of July 2013, when the market was at the same level as that of 1989 and 1990, the index has soared over the last few months and managed to add 6 billion euros to its capitalization within just the first five sessions of 2014.

Stockbrokers describe this as technical growth, relying partly on expectations for the privatizations to take place this year in the program of state sell-off fund TAIPED. Finance Minister Yannis Stournaras’s statement this week that the country will tap the money markets in the second half of the year, issuing five-year bonds for the first time since being priced out four years ago, has also created a favorable atmosphere among Greek and foreign investors.

Another factor that has pushed stock prices up has been the entry of hedge funds (with over 240 estimated to be present in the local market) in a small group of listed companies. These are blue chips that either have a comparative advantage in the domestic market due to their activity – such as PPC, OTE, OPAP and Hellenic Petroleum – or whose activity is mostly conducted abroad and which are not affected by the local economy.

Manos Hatzidakis, chief analyst at Beta stockbrokers, explained to Kathimerini that the rise is technical as it has been cultivated while the fiscal figures of the country appear improved. At the same time, according to Hatzidakis, the expectation that Greece will return to the money markets sends a signal to foreign portfolios to secure holdings in Greek stocks and bonds as most valuations are still at low levels.

The recent bourse rise has also factored in the publication of the BlackRock report regarding the stress tests on local banks, expected within January, putting an end to rumors about the extent of the banks’ capital needs for 2014. Brokerage companies are of the opinion that the publication of the report will settle the market. Investors are also betting on a positive conclusion to Eurobank’s share capital increase in the next couple of months.

Analysts warn however that the market faces an important obstacle this year, and that is the results of the European and local elections in May.

Nikos Kafkas, also of Beta stockbrokers, notes that most purchase orders come in from abroad and head to specific stocks. “Several valuations on FTSE-25 blue chips have started showing a major rise, which means that a possible negative event in the future would lead to considerable sales,” he warns, adding that “even over the course of individual sessions there are liquidations made that constitute technical moves to register temporary gains before funds are placed again at lower levels.”

Pessimists stress that the drop in bank deposits and the increase in expired debts have created a technical bliss in the market which could be reversed at any moment, sending the bourse to considerably lower levels.

ekathimerini.com , Friday Jan 10, 2014 (20:19)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. ECB bank assessment to show 6-billion-euro capital gap, Citi says
6. Cyprus GDP upgrade seen as boosting bailout exit plans
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.