Athens Stock Exchange: With a banking rally it bid farewell to July – Monthly gain of 5.26%

The Greek stock market closed Wednesday’s (31/7) session on a positive note, with the banking sector giving its back, stopping a six-day downward trend that had cost it -5.26%. The domestic market resonated with the favorable sentiment prevailing in international stock markets, with the better-than-estimated corporate results and window dressing at the end of the seven-month period as catalysts for a rise.

In more detail, the General Index gained 17.71 points or +1.21% today to close at 1,478.17 points, which was the high of the day. The low for the day was found at 1,463.58 points. July proved to be a highly beneficial month for the X.A., as it “climbed” from the edges of 1,400 points to above 1,470 points, gaining a cumulative +5.26%. The 7-month performance amounts to +14.31%, while the GD is now only -1.64% away from its one-year (and 13-year) high of 1,502.79 points.

Banks with their “weight” and the positive momentum with regard to the systemic ones (return to dividend distributions after 16 years, privatizations, overseas expansion plans, increasing profitability, etc.) played a key role in the upward trend of the stock market. The sector index’s gains exceeded +7% in July, and since the beginning of this year it has “climbed” by about +23%.

“Breath of life” was offered by the half-year results of listed companies, with investors rewarding Tr. Piraeus and Titan. Both announced their financial performances before the start of today’s session. In fact, in the case of TITC, the stock closed at new record levels, approaching 33 euros.

A new 4.5-year high for Coca Cola, which “flirted” intraday with 34 euros for the first time since February 2020. Notable gains were recorded by Eurobank (announces results immediately after the end of the session), Alpha Bank, PPC, Lamda Development, HELLENiQ ENERGY and EYDAP, among others.

Systemic banks’ results set the trend

Buyers today positioned themselves with great fervor in certain securities, in the context of window dressing, which is customary at the end of long periods and in this case July and 7 months. Abroad, traders are focusing on tonight’s Federal Reserve “oracle” on interest rates. Subsequent statements by US Federal Reserve Chairman Jerome Powell are of greater interest, as more details are expected to be provided on the timeline for the start of the much-needed monetary easing. All eyes are also on the results of the tech giants.

By the end of this week, the systemic banks will present their financials for Q2 and H1 2024. The performance was announced by Tr. Piraeus before the start of today’s session, recording an all-time high in half-year financial results, as it achieved a net profit of EUR 563 million compared to EUR 299 million in the corresponding period of 2023.

Immediately after the conclusion of today’s trading session, Eurobank will also publish its results. The result of the public offer for Hellenic Bank of Cyprus was also announced, with Eurobank’s final stake being approximately 56%. Back to the banking figures announcements, on Thursday (1/8) it is the turn of National Bank, followed by Alpha Bank on Friday (2/8).

As for the other listed companies, Titan announced today that its six-month net profit increased by +34.1% to €148.7 million. At EUR 1.323 billion sales in the same period. Meanwhile, the stock is on the verge of inclusion in the MSCI Greece Standard Index. The index review was completed today, while the relevant announcements will be made on 12 August. Finally, Optima Bank will present its half-year results tomorrow.

Debut for Performance Technologies on the Main Market of the Athens Exchange, moving up a level after years of presence on the Alternative Market. At 7.15 euros per share the opening price, with a free float for the first three days. It should be noted that two packages changed hands in Performance, about 5 minutes before 12:00. A total of 50,000 shares were passed at a price of EUR 7.2, with the total value of the two transactions “touching” EUR 360 thousand.

Positive signs abroad

Europe’s main stock exchanges remain on an upward trajectory, although they are losing momentum as time goes on. The main indices in France and Britain stand out with gains of +0.7% and +1%, respectively. The pan-European Stoxx 600 is trading at +0.65%. On the flip side, the Spanish IBEX 35 slides by -1.5%. Investors are weighing eurozone inflation data, which came in at 2.6% in July, according to Eurostat data. Corporate earnings continue to be in focus.

Big Tech’s half-year earnings announcements are on the radar of Wall Street traders. Increased profitability for Microsoft, but disappointing performance in the cloud sector. Meta, Amazon and Apple are next in line over the next 24 hours. Tonight’s Fed rate verdict will determine the short-term trend in the US stock market. By state, the buyers prevail today, with the tech Nasdaq “climbing” by +2.3%, more than erasing yesterday’s “dip”. The S&P 500 is trading at +1.4%.

Buyers rushed to the Asian stock markets today, after the decision of the Bank of Japan’s (BoJ) central bank to raise its key interest rate to the highest level since the end of 2008. Indexes in Japan and South Korea gained more than +1%. “Jumpy” performance for China and Hong Kong markets. At an all-time high for Australia’s S&P/ASX 200 after the inflation report.

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