Stock market shows upward trends despite lower turnover
Athens stock markets surged over 2% led by banking stocks as falling oil prices and expectations of a US-Iran deal boosted investor sentiment across European markets.
The General Index stands at 2,319 points, posting a gain of 2.1%, although turnover remains low, at 110 million euros, with 20 million shares traded.
The rally is led by the banking index, which is up 2.7% at 2,638 points. The FTSE of high capitalization is trading at 5,884 points with +2.2%, while the FTSEM of mid-capitalization is recording +1.1% at 3,039 points.
This new stock market week begins with strengthened investor interest, as oil prices fall below 100 dollars per barrel, amid expectations for a possible agreement between Iran and the US. The Athens market appears to be taking advantage of this situation, continuing its upward trajectory, following gains of 1.1% for the General Index and 1.3% for the Banking Index last week.
One of the main highlights of last week was PPC’s impressive capital increase, which freed up significant capital returning to the Athens Avenue market, with this trend continuing today.
In the same climate, banks maintain their advantage, bolstered by the broader upward trend of the sector in Europe, while PPC remains in the spotlight, with investors actively seeking its shares.
Movements on the board
In the banking sector, Alpha stands out with a rise of 5%, while Eurobank increases by 3.7%. Piraeus and NBG post gains of 2.4% and 2.2% respectively.
Optima follows with an increase of 3.3%, while Bank of Cyprus is the only stock recording a decline of -3.1%, as it trades ex-dividend of €0.50 per share.
At the top of high capitalization, Aegean and GEK TERNA post gains above 4%.
PPC continues to dominate turnover, with over 19 million euros, and its price remains firmly above 21 euros, recording an increase of 2.8%.
Apart from Bank of Cyprus, losses are recorded by AKTOR (-1.3%) and OTE, EYDAP with a decline below 1%.
Among mid caps, ADMIE stands out with a new jump of 5.8% to 3.85 euros, ahead of its own capital increase.
Ellaktor follows with +5%, while Intracom and Autohellas strengthen by more than 2%.
On the board as a whole, 86 stocks are rising, compared to 43 that are declining.
Ilias Zacharakis of Fast Finance comments that the market now exudes characteristics of a developed market. If one considers that the stock exchange closed the week with gains, while simultaneously absorbing the largest capital increase in its history, it is obvious that the Greek market deserves this “stamp”.
He adds that a gradual diffusion of interest towards smaller and mid-cap stocks is being observed, alongside positive business developments and good results. So far, there are no excesses and the market is functioning at a calm pace, which is considered positive.
The international picture
Oil prices are retreating significantly, as the US and Iran appear to be approaching an agreement that includes the opening of the Strait of Hormuz.
Brent is trading at 97.5 dollars, down 5.9%, while US WTI is at 90.9 dollars, also down 5.9%.
European natural gas loses 4.5%, trading at 46.5 euros per megawatt hour.
In equities, futures contracts of Wall Street indices are showing strong upward momentum, following the new record of the Dow Jones on Friday.
Dow futures are up +0.9%, S&P 500 +1% and Nasdaq +1.4%.
The picture is similar in Europe, with the German DAX at +1.4%, the French CAC 40 at +1.8%, the Italian FTSE MIB at +1.2%, the Spanish IBEX 35 at +2.1% and the pan-European Stoxx 50 index at +1.7%.
In the bond market, yields show significant de-escalation, with the US ten-year at 4.47%, the German at 2.94% and the French at 3.71%, while the Greek bond is at 3.60%.
Finally, buyers prevail also in metals, with gold at 4,560 dollars per ounce (+0.8%) and silver at 78.1 dollars (+2.6%).
