Three-day rally on the Athens Stock Exchange – Back above 1,440 points

The Greek stock market made a strong start to September, recording its third consecutive rise. The General Index closed at the highs of the day, with “heavyweights” on its side, which fell significantly in August, creating the right conditions for buyers to re-enter. In fact, it finished above 1,440 points for the first time since August 1 (1,474.44 points), i.e. just before the unprecedented “wave” of selling on “Black Monday” (5/8).

In more detail, in today’s (2/9) session the General Index gained 14.98 points or +1.05% to close at 1,446.17 points, close to the daily high of 1,446.21 points. The daily low was found at 1,432.04 points. Note that the GD has gained a total of +1.46% over the last three days, while this year’s return now “touches” +11.83%. Recall that Athens Avenue ended August at -3.18%. The double-digit rise rate (+10.68%) was “deep” over an eight-month period. Banks declined by -3.03% on a monthly basis, while “climbing” by +19.22% in the 8-month period.

Although buyers were at the “wheel” from the start of Monday’s trading, they stepped on the gas in the second half, namely from 14:30 onwards. At the same time, the domestic market diversified from the initial downward trends of European stock markets, which then pulled out their own defenses.

There was no shortage of volatility on the board, with subdued movements, selective trading and low turnover due to today’s US holiday. Leading the bullish breakout were OPAP, OTE and Piraeus Bank (back above 4 euros). Sarantis, Alpha Bank and Ethniki followed with equally notable gains. Total domestic market capitalization returned above the 100 billion euro milestone.

The rise on the stock exchange today was based on securities that are heavyweight on the board, such as banks and large-cap stocks. In this context, the banking index “climbed” by +1.37% to 1,282.90 points, the FTSE 25 gained +1.34% to 3,520.37 points, while the Mid Cap (mid-cap) fell by -0.34% to 2,312.88 points.

Daily trading activity was set at EUR 81.819 million, of which EUR 8.786 million was related to packages. Motor Oil (EUR 16.569 million), Piraeus (EUR 15.325 million) and Eurobank (EUR 11.572 million) made a turnover of more than EUR 10 million. The market capitalisation amounts to EUR 100,171 billion. Positive signs for 62 securities, negative for 33, while 21 remained unchanged.

Among systemic banks, Piraeus climbed +2.87% to 4.02 euros, followed by Alpha Bank (+1.91% to 1.576 euros) and Ethniki (+1.53% to 7.978 euros). Eurobank remained unchanged at 2.064 euros.

The opportunities created by August and the “heavy” September

Some stocks that underperformed in August have created “room” for buyers to reposition as they are trading at attractive levels. Trading activity was also reduced today as much of the investment community was absent due to the Labor Day holiday in the U.S.

Analysts expect that, soon but gradually, the market will gain fertile ground for more convincing placements by traders and that volumes will increase. At the same time, last month’s losses give room for a reaction and a resumption of buyers with the ultimate goal of the multi-year highs of 1,500 units. Of course, this will also depend on the picture of the international stock markets, where some indices are already moving at record levels, so the correction scenario is very likely in their case and may affect the general sentiment.

September is predicted to be rich in news, which will start dynamically with the government announcements from the podium of the 88th TIF next weekend. In between, two major rating agencies are going to publish their reports on the Greek credit rating. These are the Canadian DBRS (6 September) and the American Moody’s (13 September), with the latter being pending, as it is the only agency that has not given the country an investment grade. The placement for the 18.4% stake that the HFSF controls in the National Bank of Greece is also pending, and will be postponed until early October.

The weekend of 17-18 September is of key importance for the global economy, as the US Federal Reserve is expected to make its first interest rate cut in about 14 months, where it has held steady at a record level of 5.25% to 5.50%. The European Central Bank will meet a week earlier (September 12).

The month starts with Sarantis’ half-year results, as the listed company will make announcements after the end of today’s trading session on the Xetra. This will be followed on Tuesday by OPAP, where management is expected to provide answers to many questions, with a focus on the dividend. Market expectations are that it will amount to 0.50 to 0.55 euros per share.

Attention is also turning to Attica Bank, which holds an extraordinary meeting on Tuesday with the main item on the agenda being the merger of the bank with Pankritia, with the latter being absorbed by the former. Last Friday the Competition Commission gave the green light required for the deal. Apart from OPAP, Trade Estates will announce its financial performance tomorrow (3/9), while on Wednesday (4/9) it will be Quest’s turn.

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