Market Monitor – Market Comment – FTSE-25 three day returns – In the Spotlight [Manos Chatzidakis]

Greek stocks ended significantly higher on Tuesday, extending their rally for the third successive session. The composite index of the market jumped 3.26 pct to end at 835.40 points, gaining 9.68 pct in the past three sessions and reversing its 2015 losses. Improving climate in the domestic bond market encouraged investment activity for stock shares. Turnover continued a moderate €84.6mn  slightly up from Monday’s €82.2mn.

Despite strong domestic momentum significant short term gains across major blue chips may trigger a correction today and given the extend of the rally we expect prices to expand their daily range fuelling intra-day volatility.




FTSE-25 three day returns


FTSE-25 13/01 08/01 Δ (%) 2015 Δ (%)
JUMBO 9.03 7.06 27.9% 6.6%
ALPHA BANK 0.50 0.42 17.0% 6.0%
MIG 0.18 0.16 16.5% -3.2%
NBG 1.450 1.25 16.0% -1.4%
MOTOR OIL 6.55 5.66 15.7% 0.8%
OPAP 9.27 8.10 14.4% 4.2%
AEGEAN 7.30 6.40 14.1% 5.8%
EUROBANK 0.200 0.178 12.4% 7.0%
PPC 5.31 4.76 11.6% -1.7%
FFGROUP 27.00 24.50 10.2% 2.3%
VIOHALCO 1.98 1.80 10.0% 6.5%
METKA 9.25 8.43 9.7% 9.5%
MYTILINEOS 4.58 4.18 9.6% -1.3%
TERNA ENERGY 1.92 1.76 9.1% 2.1%
ATHENS WATER 5.65 5.18 9.1% -9.6%
OLP 10.89 10.00 8.9% 3.7%
HEL. EXCHANGES 5.00 4.63 8.0% 7.5%
GEKTERNA 1.92 1.78 7.9% 1.6%
ELLACTOR 1.96 1.82 7.7% -8.0%
HEL. PETROLEUM 3.75 3.53 6.2% -1.3%
TITAN 19.70 18.60 5.9% 2.8%
GRIVALIA 7.90 7.48 5.6% 4.4%
BANK OF PIRAEUS 0.98 0.93 5.1% 7.3%
HTO 8.86 8.44 5.0% -2.6%
COCA COLA 14.70 14.68 0.1% -6.3%


In the Spotlight


Greece: Finance Minister Gikas Hardouvelis warned on Tuesday that the prospect of a eurozone exit is not out of the question but an “accident that could happen,” and outlined the five major problems that the country’s economy will come up against if the creditors’ assessment is not completed in time or if Athens is not granted another extension to the bailout program.  In other news Moody’s in a report stated that risk of Greek exit credit is negative for Euro Member States yet contagion risks are lower than in 2012.


Greece/GDP: Greek per capita GDP fell 6.3 pct or by 1,170 euros in 2012, compared with 2011, as a result of an imposed austerity policy in the country, Hellenic Statistical Authority (ELSTAT) said on Tuesday.


Greece/CPI: Greek consumer prices fell 2.6 percent in December, with the annual pace of deflation accelerating from a 1.2 percent drop in November, data from the country’s statistics service showed on Tuesday. Greece’s EU-harmonized deflation rate also picked up, showing a 2.5 percent fall in December from a 1.2 percent drop in November. For last year as a whole, Greece’s consumer prices fell by an average 1.3 percent compared to 2013.

For years an inflation outlier in the eurozone, Greece has been in deflation mode for the last 22 months as cuts in wages and pensions and a deep recession exerted downward pressures.

Deflation in Greece hit its highest level in November 2013, with consumer prices registering a 2.9 percent year-on-year decline.


Greece/PDMA: Greece will auction 13w t-bills today. Initial ask is EUR 625mn-previous yield at 1.9%.

Bank of Cyprus: Bank of Cyprus has completed the third phase of its share capital increase with its retail offer to shareholders. The bank said it received applications for 567,188 shares at 0.24 euros per share, totaling 136,125 euros. The retail offer was the final step to be taken under a scheme which started in mid-2014 when the bank raised 1 billion euros from US and European investors in equity capital at a rate of 0.24 euros a share to increase its capital buffers before EU-wide banking stress tests.


Aegean Air: Aegean Airlines announced on Tuesday its expansion to Cyprus, with the aim of covering the gap created by the closure of Cyprus Airways, adding three more aircraft to its Larnaca hub and increasing the direct destinations served to and from Cyprus to 14.


Avax: J&P Avax has landed a 125-million-euro project in Malta. The project comprises the study, construction and operation of an installation for the import of liquefied natural gas (LNG), its storage and gasification on the Mediterranean island. The duration of the contract is 18 months. The company’s management has forecast that in 2015 its turnover and profits will have returned to the levels they had been at before the start of the financial crisis, and will stabilize in the coming years with help from the group’s portfolio of concessions.

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