New banking pressures on the Athens Stock Exchange – 1.470 points within striking distance

Today’s (7/29) session was a session of tight trading and lack of risk appetite on the Athens Stock Exchange, which returned to negative territory under the “weight” of dividend cuts, mainly from National Bank. Despite the losses, contact was maintained with 1,470 points, with the General Index closing off the daily lows.

More specifically, the GD fell by 1.24 points or -0.08% to close at 1,468.01 points. Extremely small range of the index, between 1,462.81 (low of the day) and 1,468.84 points (high of the day). With two more sessions left to complete the month of July, the X.A. is up +4.54% in the month. At +13.52% its performance this year. The correction is considered reasonable, as Athens Avenue is coming off four consecutive weeks of gains.

At low levels for yet another day, turnover, typical of the investment scarcity due to the summer. The negative protagonist was (again) the banking sector, as it led today’s decline, which was the fifth consecutive decline for the sectoral index. In doing so, it moved further away from the psychological threshold of 1,300 points. The National Bank was in the “eye of the storm” because it was trading without dividend rights.

Selected non-banking blue chips acted as a “counterweight” for the domestic market. The reason is Motor Oil, Cenergy Holdings, OTE and Titan, with the latter two “flirting” with new records. Coca Cola also “explored” new peaks. Apart from ETE, PPA and ABAX also came under strong pressure due to dividend cuts. Hellaktor was in the red, with the 2 euro level now in question.

Dividends and results in focus

Athens Avenue returned to negative territory after Friday’s bullish break and after a three-day decline (July 23-25). Banks have been weighed down by dividend cuts recently. However, this condition is temporary, as attractive entry points for systemic securities are being created.

Momentum remains positive, with the domestic market going through a period marked by corporate results, as well as important decisions on monetary policy by central banks, in anticipation of much-needed interest rate cuts. The closest point of resistance for the GC is 1,480 points, while its support counterpart is located at 1,450 points.

Full of economic results announcements in the new week, with rich banking interest. The first one is made by HSE immediately after the end of today’s session, followed on Tuesday (30/7) by Entersoft and Marfin Investment Group. Their performance for the second quarter and the first half of 2024 are announced on Wednesday (31/7) by Eurobank, Piraeus Bank and Titan.

On Thursday (1/8), National Bank and Optima Bank will take their turn, and on Friday (2/8) the barrage of announcements will conclude with Alpha Bank. According to reports, the first half earnings of the systemic banks will exceed 2 billion euros, in the best performance of the banking system since 2008.

National Bank (EUR 0.3642586663 per share), ABAX (EUR 0.03) and PPA (EUR 1.34) “cut” their dividends today. As for ETE, the shareholders’ reward will take place on Friday, August 2. At the same time, trading of the new shares of EKTEP resulting from the split has started (reduction of the value from EUR 0.52 to EUR 0.26 and simultaneous increase of the total number from 11.25 million to 22.5 million shares).

Attica Bank remains on the investment “radar” after the exchange relationship agreed by the boards of directors of the bank and Pancretia, in the context of their merger and the creation of the fifth banking pole. The proposed exchange ratio is 0.0292156343836978 new ordinary registered shares of Attica Bank for each one ordinary registered share of Pancretia Bank.

Shift in Europe – Mixed picture on Wall Street

Investors on Wall Street are focusing on corporate results and the Fed, with the major indices recording mixed signs and mild changes, coming from a rise of more than +1% last Friday. Much of the lost ground from the unprecedented tech sell-off (the most intense in “depth” in two years) that preceded it was thus covered. The focus of Wall Street investors is on the Federal Reserve’s “oracle” next Thursday. The “bets” for a rate cut in September are increasing.

A 180 degree “turn” in European stock markets, as the major indices have changed sign. Despite a bullish start and trading up to +1%, sellers now prevail. The French CAC 40 is down -0.9%, followed by the Italian FTSE MIB at -0.4%, the Spanish IBEX 35 at -0.3% and the German DAX at -0.2%.

Positive signs were noted in almost all Asian stock markets, with Japan’s Nikkei index recovering, gaining over +2% and putting a brake on its 8-day downward streak. The Kospi in South Korea and the Hang Seng in Hong Kong rose at least +1%.

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