Athens Stock Exchange at a 6-week low – Third consecutive fall

Exposed to international pressures and lack of liquidity on a domestic basis, the Greek stock market remained in downward territory for the third consecutive day. Banks were again at the center of the liquidation, while few securities “escaped” with profits.

In particular, in Wednesday’s (23/10) session, the General Index fell by 7.51 points or -0.53% to close at 1,407.14 points. This is the lowest close since September 12 (1,406.91 points). Today it moved in a range of about 14 points, namely between 1,405.39 (low of the day) and 1,419.95 (high of the day).

With its new decline, the GD is dangerously close to the critical support level of 1,400 points, as well as the 200-day moving average located at 1,398 points. Over the last three days it has retreated by -2.52%, intra-October losses amount to -3.08%, while this year’s return on the XE is limited to +8.82%.

Eurobank was the negative protagonist with losses in the vicinity of -3%, followed by Alpha Bank close to -2%. As for blue chips, Metlen, Titan, Viohalco, GEK Terna and Motor Oil were under strong pressure. Turnover was at low levels, although packages were again brokered in order to “raise” the total value of transactions above the psychological threshold of 100 million euros.

The domestic market seems to be overreacting to the downward trends of foreign stock markets, which are correcting in the wake of recent records. Several securities show a significant discount compared to shares of related activities traded abroad. Therefore, the attractive valuations of Greek equities give a strong reason for a reaction, which is not coming.

Which stocks are attracting investor interest

Nervousness is prevailing in Athens, as reflected by yesterday’s plunge, with the banking sector being targeted by sellers after Goldman Sachs and Morgan Stanley cut their target prices. An additional ‘weight’ is the report from the Bank of Greece, which sounds the alarm about the creation of a new generation of ‘red’ loans. JP Morgan’s vote of confidence in Greek banks was not enough, although it maintained its “overweight” recommendation.

At the same time, the stock market seems to have run out of liquidity after the continuous corporate actions (placements, capital increases, bond issues), having limited “fuel” to react. Subdued movements are seen in international markets, as investors remain cautious ahead of the US and Eurozone PMI data to be released later this week.

Of interest is Sarantis, which released its 9-month financial performance today. The listed company recorded an increase in sales and profits, largely due to the integration of Stella Pack. Management reiterated that it remains focused on achieving the targets it has set for the full year 2024. Metlen is scheduled to announce its results tomorrow (24/10).

Today, the extraordinary general meeting of GEK TERNA was held, where shareholders approved the sale of TERNA Energy to Masdar, in the wake of the mega deal of 20 June. As stated by the Chairman and CEO, Mr. Georgios Peristeris, this sale will strengthen GEK Terna’s cash position by EUR 850 million and reduce the debt burden by EUR 1.1 billion on a consolidated basis. Without the dividend entitlement of EUR 0.4 (net amount EUR 0.38), ELVE’s shares were trading today.

Cenergy Holdings remains in the spotlight, following a EUR 200 million capital increase, as subsidiary Hellenic Cables signed a framework agreement with Enexis Netbeheer for the supply of medium/high voltage overland cables as part of Enexis’ EUR 2.3 billion power grid upgrade project in the Netherlands. The initial term of the contract is 8 years, with the possibility of extension for a further 4 years.

Corrective trends in international markets

Key indices on Wall Street are recording losses today, with corporate results and “pinched” US bond yields acting as a drag on markets. A second day of losses yesterday for the Dow Jones and the S&P 500, both correcting after last Friday’s record highs. In contrast, the Nasdaq closed in positive territory and neared its all-time high.

European markets are down modestly, with sellers putting additional pressure after Tuesday’s controlled profit-taking. Losses -0.1% for the Stoxx 600, with the main indices of the major bourses on the Old Continent moving lower to -0.4%. The focus is on Deutsche Bank, whose quarterly earnings beat analysts’ expectations.

Mixed signs on Asian bourses, with Chinese indices continuing on an upward trajectory. Gains of over +0.5% for the Shanghai Composite, while the Hang Seng in Hong Kong moved higher by +1.3%. Worth noting is Tokyo Metro’s impressive debut, with a 45% “jump” for the stock and a 15-fold IPO outperformance.

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