Market Mayhem: Athens Stock Exchange Plunges 7% with Massive Liquidations

On Monday (5/8), the General Index plunged by -7.37%, trading at 1,325.49 points, fluctuating between a low of 1,325.03 and a high of 1,428.01 points.

The current scenario reflects one of the most significant daily declines in recent years, comparable to February 24, 2022 (-6.42%) and March 23, 2020 (-7.58%). If the index falls below 1,300 points, it risks wiping out 2024’s gains.

Banking Stocks Hit Hard

Banking stocks are under severe pressure again, contributing to the overall market turmoil. The continued global sell-off, coupled with growing concerns about a potential US recession, is heavily impacting Athens Avenue. The escalating geopolitical situation in the Middle East, with Israel preparing for a possible attack by Iran and Hezbollah, adds to the market’s woes.

Quarterly Announcements and Future Projections

This week’s agenda is packed with half-year result announcements, following the recent updates from systemic banks. On Tuesday (6/8), PPC will kick off the announcements, followed by OTE and Coca-Cola on Wednesday (7/8). Ideal Holdings and Petros Petropoulos SA will announce their results on Thursday (8/8), and BriQ Properties and Intercontinental International will complete the cycle on Friday (9/8).

MSCI Index Review

Next Monday (12/8), the restructuring of the MSCI indices will be announced as part of the MSCI Quarterly Index Review. Titan is likely to be upgraded to the MSCI Greece Standard Index. Any changes will take effect on September 2. The current main index for Greek shares includes Ethniki, Eurobank, Alpha Bank, Piraeus, OTE, OPAP, PPC, Metlen, Jumbo, and Motor Oil.

Additionally, last Friday, it was announced that the Athens Avenue has been included in S&P DJI’s watchlist for a possible upgrade to developed markets in 2025. This is contingent on Greece completing the structural reforms introduced by the RRF, which underpin significant progress in the Greek economy. Today, Alpha Real Estate Services is trading without the right to a dividend of 0.26 euros per share.

Sellers Dominate – Mid-Session Overview

Although Friday’s session was the worst in 16 months, today’s session is expected to be even more challenging. Banking sector indices are down by -6.45% to 1,173.74 points. The FTSE 25 (large capitalization) index is down by -5.13% to 3,309.53 points, and the Mid Cap (medium capitalization) index is down by -5.5% to 2,120.76 points.

Trading activity stands at 75.741 million euros, indicating that sellers are heavily active in the market. Transactions for Piraeus exceed 9 million euros, and for NBG and Metlen, 7 million euros. Market capitalization has dropped to 94.749 billion euros, with 108 declining stocks, 5 unchanged, and only 4 rising.

Sector-Specific Declines

In systemic banks, Eurobank dropped by -7.6% to 1.8915 euros, Alpha Bank by -7.07% to 1.512 euros, Piraeus by -6.79% to 3.569 euros, and Ethniki by -5.99% to 7.22 euros.

Among high-cap stocks, Aegean, PPC, GEK TERNA, Titan, Viohalco, and EYDAP faced losses of -6% to -8%. Metlen, OPAP, HELLENiQ ENERGY, Lamda Development, Cenergy, Sarantis, Ellactor, Autohellas, and ElvalHalcor followed with declines of -5% to -6%. OTE and Motor Oil fell by -4% to -5%, while Jumbo and AIA dropped by around -3% to -4%.

In the mid-cap segment, Intralot, Profile, and Optima Bank led the losses with declines of -8% to -9%. HEXA, AVAX, and Lavipharm followed with drops of -7% to -8%. Intracom Holdings, Ideal, and Techniki Olympiaki fell by -5% to -6%. ADMIE, Fourlis, Intrakat, Quest, Austriacard, and Plastic Thrace lost -4% to -5%.

One-Month Low and 16-Month Negative Record

The stock market’s current state is marking a low point for the month and setting a negative record for the past 16 months.

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