ECONOMY

Rally still on, with mid-caps soaring

Last week may have had few sessions, with just three taking place due to the Easter holiday, but it was quite profitable for the majority of stocks amid increasing interest in mid-caps and small-caps. The Athens Exchange (ATHEX) general index closed the week last Thursday at 1,973.25 points, recording a 4.85 percent rise on the previous Thursday’s close. Mid-caps in particular posted 10.23 percent growth on the week. The unusually high demand for mid-caps has likely originated with investors who posted large losses in bank stocks and now need a quick rebound. The rise by Asian bourses seems to have pulled all of the world’s markets upward, but financial analysts are cautious as to what may follow. They have suggested that it is too early to speak of the return of bullish investors across the world and, especially in Greece, the warning is that when the focus shifts to the mid-cap or small-cap stocks, the market’s rally is nearing an end. Others, however, argue that many mid-caps have been undervalued in the global slump and have a single-digit price-per-earnings ratio.