The Stock Exchange soared with a rise of 6.09% and a turnover of 362.67 million.
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Loading... - Morken Brandt
- 09 Jun 2023
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The Athens Stock Exchange received the election outcome with enthusiasm, leading to a robust rally and reaching new nine-year highs. The increased activity resulted in higher turnover, particularly in the banking and PPC sectors, which experienced a significant double-digit percentage surge. Market participants eagerly positioned themselves, recognizing the potential for a recovery in investment grade and subsequent upgrade of the Athens Stock Exchange into the developed markets category. The prevailing optimism stemmed from the high expectations that the second round of elections would result in the formation of a strong, self-reliant government committed to implementing further reforms. This positive sentiment also spilled over into Greek bonds, causing the 10-year yield to drop to a six-month low of 3.86%.
Depolas Investment Services highlighted the constructive impact of Nea Dimokratia's clear mandate to continue its work on the economy and the Athens Stock Exchange. They expressed confidence that the market had sufficient capital to sustain its upward trajectory in the coming sessions and maintain its outperformance.
The General Index concluded with an impressive 6.09% surge, reaching 1,201.32 points, while the turnover soared to 362.67 million euros. The high-cap index closed with gains of 6.95% at 2,959.462 points, and the mid-cap index recorded a positive movement of 3.85% at 1,710.93 points. Furthermore, the banking index displayed a robust performance, strengthening by 12.47% to reach 991.41 units.
Among the blue-chip stocks, Coca-Cola was the only one to experience losses (-0.89%). Notably, PPC excelled with a remarkable increase of 15.93%, National Bank rose by 15.3%, Alpha Bank by 14.17%, and Piraeus Bank by 13.5%. Eurobank and Mytilineos followed suit with gains of 8.5% and 7.74%, respectively. Lamda exhibited a rise of 6.88%, while HELLENiQ ENERGY, EYDAP, and ELVALHalcor recorded gains exceeding 5%. Motor Oil, Jumbo, PPA, and Quest all saw increases of over 4%.
The yield on the 10-year government bond hit a six-month low at 3.86%.
In light of the election results, domestic analysts expressed positive views on the prospects of the Greek market, providing investment recommendations.
Eurobank Equities advised investors to increase their exposure to Greek shares, as they anticipated that the banks and PPC would be among the primary beneficiaries of Nea Dimokratia's resounding victory. Consequently, they added PPC (replacing OTE) and Piraeus Bank to their top picks portfolio to reflect the clear path towards the revaluation of Greek stocks. Additionally, their portfolio included OPAP, Jumbo, and Mytilineos.
Axia projected that the Greek equity market would strengthen as a result of the optimistic outlook for the economy. They identified several sectors and stocks that were likely to benefit: 1) PPC, HELLENiQ ENERGY, and National Bank would profit from the political clarity; 2) construction and infrastructure companies, along with EYDAP, would benefit from continuous bidding activity and streamlined regulatory processes; and 3) the remaining systemic banks, highly liquid stocks (OTE, Mytilineos, Jumbo, and Motor Oil), and HEXA would also perform well.
Optima Bank also outlined the stocks and sectors poised to gain the most from the election outcome. They identified banks, HEXA, PPC, and software companies as having the greatest exposure to the election results. Energy and refining companies (Mytilineos, Motor Oil, HELLENiQ ENERGY, TERNA Energy), as well as the construction sector (GEK TERNA, INTRAKAT, Ellaktor), were categorized as having moderate exposure. Finally, stocks with limited exposure included OTE, Coca-Cola, Jumbo, OPAP, and Fourlis, which benefited from a positive macroeconomic backdrop and reduced borrowing costs.
