Friday February 27, 2015 Search
Weather | Athens
11o C
6o 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)  
Minister says he hopes that ENFIA ends
Postponing an IMF tranche ‘means default’
Stournaras says deal must be completed
Greek bank deposits plunge to lowest point since 2005
Gov’t raises concern over payment to IMF in March
The Euro Working Group discussed Greece’s imminent funding problems on Thursday amid mounting concern about how the country will meet its obligations next months. Earlier in the day, Ministe...
More than 300 migrants released
More immigrants and asylum seekers were released from detention centers across Greece on Thursday as the government seeks to make good on a campaign pledge to close down such facilities, cit...
Inside News
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
BASKETBALL
Greens lose at Maccabi but preserve head-to-head advantage
Panathinaikos suffered its third loss in eight games at the second stage of the Euroleague going down 73-70 at Maccabi Tel Aviv on Thursday, but has preserved its better head-to-head record ...
Inside Sports
COMMENTARY
A breath of opportunity
We are still living in the Greece we know: The government is struggling to explain its retreat in the face of our creditors, the opposition (including dissidents in SYRIZA) smells blood, we ...
ANALYSIS
Having it both ways: Greece´s doublespeak to Brussels and voters
Gingerly treading between its anti-austerity promises to voters and its pledges to skeptical international creditors, Greece's new radical government is resorting to doublespeak to keep ever...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ten-man Olympiakos couldn´t overcome Dnipro
2. Greens lose at Maccabi but preserve head-to-head advantage
3. Minister says he hopes that ENFIA ends
4. Postponing an IMF tranche ‘means default’
5. Stournaras says deal must be completed
6. Panathinaikos deducted the three points earned at the derby
more news
Today
This Week
1. The unlikely winners of Greece's surrender on euro
2. SYRIZA feeling the pain
3. Turkish jets violate Greek air space
4. Schaeuble tells MPs Varoufakis 'strains' EU solidarity
5. Merkel faces stepped-up dissent on Greek bailout among lawmakers
6. Greek bank deposits return after bailout extension
Today
This Week
1. Greece prepares extension request for eurozone approval
2. Time for Alexis Tsipras to keep his nerve
3. Stubborn but not almighty
4. Greek bailout deal faces review by euro officials next week
5. Greece says eurozone deal won time as cash bled from banks
6. The ignorance of the West about the culture of Islam
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.