ECONOMY

Foreigners turn to small caps

Greek stocks posted a 1.12 percent weekly loss on the Athens Exchange (ATHEX) when, despite the excellent picture of most corporate profits, the local market failed to capitalize on it. Once again the domestic market could not follow the positive mood on other European bourses, some of which have reached record highs. This increases the prospect of a considerable decline on the bourse should international markets see a correction. However, there is a clear swing toward small capitalization by foreign investors, changing the shape of stock sessions. The Greek market has many companies with good results, positive fundamentals and able entrepreneurs. The Athens Exchange general index closed on Friday at 4,741.57 points, down from 4,795.37 points a week earlier. The FTSE/ATHEX 20 blue chip index was down 1.18 percent at 2,518.60 points. Nevertheless, the picture was very different for mid-caps and small-caps: The FTSE/ATHEX Mid-40 gained 0.39 percent, while the FTSE/ATHEX 80 small-cap index rose a significant 4.49 percent. The FTSE/ATHEX International lost 0.91 percent of its value on a weekly basis, falling to 6,729.61 points. Weekly turnover totaled -1,929.7 million, a daily average of – 385.9 million, against -355.2 million in the previous week. The week was once again dominated by a lack of direction, with a negative record in turnover for a Monday session. The mentality of Greek investors remains fragile and the peculiarity of the local market favors one-way directions making its freedom from international trends hard if not impossible. Therefore, the Athens Exchange will remain susceptible to major influence from abroad for the time being.