ATHEX headed north on Friday, in line with the European stock markets. In more detail, the General Index rose by 0.88% at 1,419.24 units (FTSE Large Cap: +0.94%, FTSE Mid Cap: +0.97%, Banks Index: +0.50%) and the traded value was shaped at EUR 79.9m, down from Thursday’s EUR 129.8m. On a weekly basis, the General Index retreated by 1.66% w-o-w (FTSE Large Cap: -1.81%, FTSE Mid Cap: -0.97%, Banks index: -3.02%). We expect ATHEX to move in line with the European markets today.
Macro Headlines
Moody’s affirms Ba1 rating on Greece, changes outlook to positive
Moody’s Ratings changed the outlook on the Government of Greece to positive from stable and affirmed the Government of Greece’s Ba1 long-term issuer and senior unsecured debt ratings. The outlook change to positive reflects an increased likelihood of sustained strengthening in banking sector health, and in addition, sees risks of economic growth and fiscal performance are tilted to the upside. Moody’s projects fiscal deficits of around 1% of GDP for the general government for 2024 to 2026, (from deficit of 1.6% in 2023) and primary surpluses of 2.2% of GDP between 2024 and 2026, outperforming the target. Finally, the ratings agency expects the debt burden to decline to below 150% of GDP by 2025 and to less than 140% of GDP by 2027.
Overall Import Price Index (MPI) decreased in July
According to ELSTAT, the Overall Import Price Index (MPI) in Industry in July 2024 recorded a decrease of 1.6% y-o-y, while in July 2023, the MPI had recorded a y-o-y decrease of 14.4%. The 1.6% y-o-y decrease of the MPI was mainly driven by the 4.2% y-o-y decrease of the Energy products sub-index while the non-durable consumer goods sub-index rose by 0.4% y-o-y. Over the twelve-month August 2023- July 2024 period, the MPI decreased by 5.0% compared to the August 2022- July 2023 period.
Company Headlines
Bank of Cyprus EGM approved listing of shares on ATHEX
Shareholders approved on Friday the listing of common shares of Bank of Cyprus on the main market of the Athens Stock Exchange. The implementation of the listing remains subject to approval from the Listings and Market Operation Committee of ATHEX, which is expected to be determined on 17 September 2024. Subject to approval of the ATHEX Listing Committee, the company intends to apply for the delisting of the common shares from London Stock Exchange, with effect from 8:00 a.m. (London time) on 19 September 2024, with the last day of trading expected to be 18 September 2024, and trading to be suspended at 4:30 p.m. (London time). According to the timetable, the listing of common shares on ATHEX will commence on Monday 23 September.
Attica Bank targets PPI to exceed EUR 250m in 2027-CEO
The CEO stated on Kathimerini that the bank goals pre-provision profit to surpass EUR 250m in 2027 from EUR 43m in 2023 as well as it targets RoTE of more than 15%. Management also aims performing loans to exceed EUR 7.0bn and deposits to surpass EUR 11.0bn by 2027.
Coca Cola HBC EGM today
The EGM is taking place today. Shareholders will approve the replacement of Anna Diamantopoulou, independent non-executive member of the BoD by Elizabeth Baston.
Intracom Holdings bought Intralot shares
Intracom Holdings announced that it acquired on 13 September, 200.000 common shares at an average price of EUR 1.1514/share.
Intracom Properties and Kloukinas Lappas commence merger process
Intracom Properties and Kloukinas Lappas (KLM) announced the commencement of the merger through absorption of the latter by the former.
The market finished Friday’s session on the green, rising 0.8%, on a EUR 79.4m turnover, following five sessions of downward pressures. The banking index was up 0.5%, with Eurobank marking a 1.4% increase, Alpha +0.6%, while Piraeus and NBG finished flattish. Among top gainers, Fourlis rose 3.6%, OPAP marked 2.3% gains, closely followed by PPC and Jumbo both up c2.2%, whereas Cenergy ended 1.8% higher. Aegean and EYDAP finished slightly below the flatline, slipping -0.4% and -c0.2% respectively.
MACRO – CORPORATE NEWS
MACRO
Moody’s revised Greece’s outlook to ‘Positive’ from ‘Stable’, citing a healthier banking sector and a better-than-expected economic performance. The agency reiterated its rating at ‘Ba1’, one notch below the investment grade threshold.
GEKTERNA <GEKTERNA GA, OW>
Reportedly, the parliament will ratify the new concession for Attica Motorway in the coming weeks, following its signing last Thursday.
BANK OF CYPRUS <BOCH CY, OW>
The EGM on Friday voted to approve the listing of the ordinary shares into the main market of the Athens Stock Exchange, subject to approval from the Athex Listing Committee. We remind that according to the expected timeline, the shares will cease trading on the LSE on September 18 and commence trading on ATEHX on Monday, September 23.
Market Comment // Trading mostly in positive territory throughout Friday’s session, the Greek market settled near its intraday highs, at 1,419.2 points, gaining 0.88%. On a weekly basis though, the benchmark index shed 1.7%, weighed down by a 3.0% decline for banks. Friday’s trade activity totaled €79m, significantly below the 100-day moving average of €118m. Elvalhalcor led gainers surging 3.9%, closely followed by Fourlis (+3.6%), Intralot (+3.4%) and Kri-Kri (+3.3%), while OPAP (+2.4%), PPC (+2.2%), and Jumbo (+2.2%) also posted strong gains. Additionally, Cenergy advanced by 1.8%, with Metlen (+1.6%), Ellaktor (+1.5%), Eurobank (+1.4%), Helleniq Energy (+1.4%), Lamda (+1.3%), Gekterna (+1.3%), Motor Oil (+1.2%) and Admie (+1.2%) following. Conversely, Premia fell 0.9%, Noval retreated 0.8%, with Aegean (-0.5%), Papoutsanis (-0.4%), Briq (-0.3%), Piraeus Bank (-0.2%), AIA (-0.1%) and CCH (-0.1%) also posting minor losses. EU futures point to a positive opening today, ahead of the likely FED rate cut this week.
Economy // Moody’s raised the outlook on Greece’s rating to positive from stable, but affirmed the long-term rating at Ba1, keeping it one notch below investment grade. The next catalyst will be the update by S&P on 18th October, especially as the particular agency has assigned a positive outlook to its BBB- recommendation.
Bank Of Cyprus // The re-listing of Bank of Cyprus shares on the main market of the Athens Stock Exchange (ASE), nine years after its 2015 exit, and the simultaneous delisting from the London Stock Exchange (LSE), was approved by the EGM on Friday. The delisting from the LSE is set for September 19th, with trading on the ASE scheduled to begin on September 23rd.
Kri-Kri // Kri-Kri is scheduled to release its H1’24 results today premarket open. In a seasonally strong quarter, we expect revenues to increase c13% yoy (€75.2m for Q2, +12.1% yoy), supported by strong contributions from the ice cream segment and sustained yogurt volume growth in international markets, more than offsetting price/mix challenges. We anticipate EBIT of €25m, down just <€1.5m yoy. We expect Q2 results to catalyze earnings upgrades, given the conservative numbers embedded in market expectations.
Lamda // At a confident conference call on Friday, Lamda mgt updated on current developments highlighting the significant cash proceeds from the Ellinikon projects, estimated to reach c€900m cumulative by the end of the year (€780m to date), which have more than covered the capex to date (c€420m). As regards malls, mgt sees sustained growth from operational malls, and significant demand for the Ellinikon malls (>60% in signed HoT contracts).
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