Poll maintains uncertainty
Rather conflicting and contradictory economic data concerning major economies caused strong volatility on foreign bourses which inevitably spilled over into the Greek market in the first week of September. The Athens Exchange (ATHEX) general index closed at 4,819.32 points on Friday, a loss of 93.21 points, or 1.90 percent, on the week. Interest abroad remained focused on the likely development of interest rates and the effect of the exposure of European banks to US subprime loans, which has sent jitters through global markets in recent weeks. At home, the effect of positive first-half results was offset by uncertainty over the outcome of this coming Sunday’s election. Analysts at foreign investment banks remained upbeat about Greek banks but were cooler about other blue chips. Merrill Lynch raised its caution about OTE telecoms in its last report, calling investment in the stock «highly risk» in view of the uncertainty as to the election result. Nevertheless, it retained its price target of -26. Citigroup set new price targets of -11.5 for Hellenic Technodomiki and -8.8 for Aegean Airlines. On the whole, foreign houses favor a gradual increase in positions in the short-term, considering that concerns over US subprime loans will abate and markets will start a rebound in the mid-term. Greek analysts, by contrast, on the whole recommend caution in the month ahead, until the political picture becomes clearer and volatility recedes. But this is not expected in the week starting today, as speculative moves are considered likely ahead of the elections.
