ECONOMY

Investors stay on seat’s edge

The Greek stock market remains in a climate of euphoria without becoming overheated. Blue chips are still leading the way, while smaller companies are trying to make the most of the positive sentiment because some have announced improved results and others have overcome difficulties. Until now, we have had no bankruptcies from mid-cap firms. Still, the many companies which have secured leases on life still remain in the danger zone. At the same time, there are significant factors causing the uncertainty, and some are completely beyond the control of market forces. A possible geopolitical crisis, a sudden shift in oil prices which are already at high levels, or even a natural disaster could reverse the optimism. But despite such risks, the market is treading on positive ground. It is very likely that in the next few days we will see a further correction in the market, although such fluctuations do not alter the general direction in which we assume long-term investors are interested. Besides, money flows show the market remains under the control of professionals who know how to avoid short-term pitfalls. The big public sector remains the market’s engine. The government is preparing privatization moves which seem to be grabbing the interest of foreign investors, and indications point to the conclusion that the government is also determined to tap the potential which the stock market offers in this respect to boost public revenue. Furthermore, next month the government will implement measures about the operation of the stock market. The primary aim is the greater internationalization of the Greek market. This is very likely to lead to further marginalization of local retail investors, who are having trouble collecting resources from domestic savings.