Economy of Greece

The prospect of convergence between Athens and its creditors on a technical extension of the Greek bailout agreement, coupled with some signs that Parliament may elect a president and prevent snap polls sent stocks soaring on Friday, though this time it was non-banking blue chips that led the way.

The European Central Bank’s refusal to take any further action to boost growth before next year took a toll on most European markets, with the local bourse seeing its early gains turn into losses on Thursday.

As Greece draws closer to having its bailout support extended, the bourse enjoyed a fourth consecutive day of gains on Wednesday, with the benchmark climbing back over the 1,000-point mark to its highest point since October 9.

Greece is preparing its response to the troika after the country’s lenders demanded a firmer commitment from Athens on fiscal and structural measures, which likely means that the current bailout will have to be extended by at least a month so an agreement can be reached.

Stocks staged a mini-rally in Athens on Tuesday in anticipation of an agreement between the government and its creditors, while market rumors spoke of the increasing likelihood that the government will obtain the 180 parliamentary votes it needs to elect a new president in February.

Investors’ wait-and-see stance regarding Greek stocks left the benchmark virtually unchanged on Monday, with the smattering of gains recorded during the day evaporating by the end of the session. Moody’s decision to postpone its revision of Greece’s credit rating contributed to the reduced trade at the start of the month, with turnover dropping to very low levels.

By Anestis Dokas

OTE telecom’s exit from the Athens Stock Exchange next year has emerged as a likely development that would leave the local bourse even poorer in capitalization terms.

OTE chief executive Michalis Tsamaz stated a few days ago in Barcelona that parent company Deutsche Telekom may acquire an additional 10 percent stake in the Greek telecom provider.

All of Wednesday’s stock gains evaporated during Thursday’s trading session in Athens as uncertainty regarding the country’s political and fiscal future overshadowed the positive corporate results announced in the last few days.

Greece's dominant power utility PPC on Thursday reported a 29.7 percent rise in third-quarter core profit, helped by lower provisions for past due electricity bills and softer energy costs.

Unimpressed by news of the inconclusive talks between Athens and its creditors in Paris, investors secured fresh gains for local stocks on Wednesday, focusing on banks and other selected blue chips.