Athens Stock Exchange: Controlled liquidations and a brake on the five-day upward rally

Athens Stock Exchange: Controlled liquidations and a brake on the five-day upward rally

Investors on the Greek stock market today (October 7) were content with selective price movements and made a moderate correction after a five-day rally that had brought gains of +3.14%. The overall index was again below 1,450 points, but did not move far enough away from this psychological threshold.

More specifically, the GD fell by 6.91 points or -0.48% during Wednesday’s session to close at 1,444.31 points, moving within a range of about 12 points, namely between 1,440.62 (daily low) and 1,452.46 (daily high).

The domestic market remained far from the favourable climate on international stock exchanges, as four listed companies (Piraeus Bank, Jumbo, HELLENiQ ENERGY and AS Company) “cut” their dividends totalling around EUR 500 million, dampening any positive sentiment. Two of them recorded significant losses and put strong pressure on the management board.

HELLENiQ ENERGY and Jumbo, which fell by about -6% and -3.5% respectively. On the other hand, GEK TERNA continued its “climb” to highs not seen in 24 years, with the sale of TERNA Energy serving as a “vehicle”. Axia also played a key role, which stated in a recent report that it “sees” the stock at EUR 27.4. Impressive rally of +20% for Attica Bank in the wake of approvals for the merger with Pancretia.

Dividends and Piraeus

Analysts had expected the Xetra price to come under pressure today after five positive sessions in a row. The flood of dividend cuts among listed heavyweights played a major role in today’s profit-taking. In particular, Piraeus (EUR 0.063/share), Jumbo (EUR 1/share), HELLENiQ ENERGY (EUR 0.6/share) and AS Company (EUR 0.13/share) traded without dividend entitlement, which led to heavy losses.

Piraeus is scheduled to pay out its dividend on Tuesday, July 16. This is the first systemically important bank to pay out a dividend in 16 years after receiving the green light from the SSM, the supervisory authority. The other banks will reward their shareholders at the end of this month.

In other news, Piraeus has engaged global investment banks to issue a new green senior preferred bond to further strengthen the bank’s MREL base. The bond has a maturity of five years and is callable after four years. The bank raised €650 million from the issue, compared to the €500 million it had originally targeted. Demand was high, with bids exceeding €3 billion.

Bullish trends on international markets

The ongoing political uncertainty in France caused great concern on the Euro markets. The local stock market was under heavy pressure on Tuesday. The French CAC 40 recorded losses of over -1.5% and the German DAX -1.3%. Today the Euro markets are reacting, all indices are in positive territory. The indices in Paris and Frankfurt are between +0.7% and +0.8%. The Italian FTSE MIB and the Spanish IBEX 35 are at around +1.1% to +1.2%.

On Tuesday, Wall Street was stagnant, but the S&P 500 and the Nasdaq were still able to extend their all-time highs. Jerome Powell’s comments sparked cautious optimism among investors. In his testimony before the Senate, the Fed chairman struck a fairly dovish tone and left the window open for monetary easing next September. His testimony before the House Financial Services Committee follows today. All eyes are on US inflation for June, which will be published tomorrow. A slightly optimistic start to the day, with the S&P 500-Nasdaq holding its record highs.

The Asian stock markets presented a mixed picture today. The Japanese Nikkei index was able to extend its all-time high and approached the 42,000 point mark. Traders evaluated the inflation data from China and Japan. Inflation in China fell just short of expectations. The consumer price index recorded an increase of 0.2 percent in June, which was below the 0.4 percent increase expected by economists.

– Athens Stock Exchange: Controlled liquidations and a brake on the five-day uptrend appeared first on ProtoThema English.