Investor expectations for a change of government in Athens and the consolidation of a stable financial and tax environment has activated funds toward Greek stocks and bonds in the last few weeks. The question is whether this strong rally can continue and attract quality investors.
According to analysts, although profit-taking cannot be ruled out due to the speed of the rise in stock and bond prices, the market’s prospects are particularly positive in general, as developments are expected to keep investment interest at a high level.
Jens Peter Sorensen, chief analyst at Danske Bank, tells Kathimerini his company is long on Greek bonds as in the rest of the euro periphery. He adds that New Democracy’s outright victory is likely to trigger even better yields for Greek bonds, even if that had already been priced in to an extent.
Beta Securities’ analysis department chief Manos Hatzidakis tells Kathimerini that investors see the ND program as containing more favorable announcements regarding the attraction of investment and the targeting for better credit ratings that will pave the way for lower borrowing costs.
It is certain that the flow of news after the elections and throughout the summer, such as credit rating decisions in August, an end to capital controls and the appointment of technocrats at key ministries, will keep interest at a high level.