Beta Sec: Daily Report 05 ΙΑΝ 2022 (Market monitor, Market Comment, In the Spotlight)

¢    Market Comment

Stocks in Athens closed higher, keeping track of international bourses’ strong start to 2022. Upbeat Coca Cola HBC led the rise despite some reluctance shown by banks. AthEx followed the jump in European bourses and the historic highs seen in New York indexes.

General index closed at 908.08 points, adding 1.03% to Monday’s 898.84 points. The large-cap FTSE-25 index expanded 0.93%, ending at 2,180.98 points. The banks index slipped 0.01%, as Alpha’s 0.93% decline sufficed to offset the 0.55% growth of Eurobank, the 0.34% advance of National and the 0.23% rise of Piraeus. Coca-Cola HBC bolstered the stock market with a 4.84% jump, followed by Lamda Development (up 2.57%), Jumbo (2.50%) and Aegean Airlines (2.24%), while both Mytilineos and Ellaktor parted with 1.05%. In total 84 stocks boasted gains, 36 posted losses and 36 remained unchanged. Turnover amounted to €47.9m, up from Monday’s €26m.

A mild correction may stabilize the market in the 900 level. Good news from energy front may also provide some incentives for selective buying in the sector.

  •  In the Spotlight 

Greece/PDMA: Public Debt Management Agency on Tuesday on announced that the country has drained 812.5 million euros from the markets via the sale of 3-month T-bills with a still negative yield, but slightly higher than the previous such transaction. PDMA said the new debt was sold at a yield of -0.40 percent, up from -0.43 percent in a previous auction, held in early November 2021. The amount raised included 187.5 million euros in non-competitive bids.

  • In other related news the Greek Finance Ministry is preparing for its return to capital markets this month, in anticipation of a decision by Fitch Ratings over the country’s credit rating on January 14. Note that the Greek state is expected to raise nearly 12 billion euros through bond issuances in 2022.

Greece/Economy: Independent Authority for Public Revenue chief Giorgos Pitsilis issued a decision on Monday calling on corporations and state entities to submit online by February 28 all their documents on the payments made to taxpayers in the course of 2021, thereby confirming that the government will introduce a new system for tax payments, spread out across the year. According to the planning of the Finance Ministry and the IAPR, the submission of tax declarations for the 2021 incomes will begin in March, with the first tranche due by end-April for most taxpayers. The tax dues will likely be spread into 10 equal installments, with the same likely to happen with the 2022 Single Property Tax (ENFIA).

  • Energy Sector: Greece’s Public Gas Corporation (DEPA) and Russia’s Gazprom have reached an agreement on prices, so that the gas DEPA will obtain this year will rely by 80% on its market price and 20% on oil rates. The balance will shift to 85%-15% next year, with a further adjustment on that pattern for the years up to 2026, when the existing contract expires.

In other news the government is set to announce the extension of subsidies for power bills into the first few months of the year, with priority being given to vulnerable households, using property assets as a criterion so as to exclude holiday and secondary homes. The measures are to be announced by Prime Minister Kyriakos Mitsotakis and concern January for now, but will be adjusted to the course of rates and the state’s financing capacity. For this month, the government aspires to offer the biggest possible coverage for households or even all domestic consumers. This will depend on the available resources, which will come from the emissions auction, with estimated revenues this year of 1.5 billion euros.

  • Greece/ E-Commerce: The value of e-commerce activity totaled 14 billion euros in 2021, a survey by ELTRUN and the Association of Business and Retail Sales of Greece (HRBA) said on Tuesday. The survey was conducted in December on a sample of 859 internet users and covered both products and services. 

The turnover seen is a new record for the e-commerce market, with at least 15,000 Greek enterprises having their own channel of digital sales and several e-shops recording annual sales of more than 10 million euros. The survey showed that 50% of internet users made purchases online in the last 15 days, the same as in June 2021, while at least one in three online consumers said their online purchases accounted for more than 20% of their total purchases.

  • The survey showed that hotels/tickets accounted for the biggest percentage of online purchases (45%), followed by electrical appliances/electronics with 34%, clothing with 20%, toys/cosmetics with 17%, personal care products with 13% and furniture, also with 13%.

Bank of Piraeus: Piraeus Bank said it has sealed a deal with Davidson Kempner for the sale of a shipping non-performing exposures portfolio amounting to 0.4 billion euros gross book value. The agreed consideration will reach approximately 53% of the portfolio gross book value. The transaction is reducing the NPE ratio of Piraeus to circa 15% from 16% as at 30 September 2021 and increases its NPE coverage ratio to circa 40% from 39% previously.

  • The expected capital impact of the transaction stands at around -20bps over the 30 September 2021 total capital ratio of Piraeus. “Taking into account the executed transactions of Mayfair project (announced on 20 December 2021) and Sunrise II NPE securitization, the total capital ratio of Piraeus Financial Holdings is strengthened by more than 100bps over 30 September 2021 reported level, without taking into account the organic capital generation of Q4.2021 and the anticipated impact of the Thalis project (cards merchant acquiring business carve-out), expected to close in Q1 2022,” the bank said in a purse filing..

Entersoft: The company announced the buyout of LOGON S.A for €1.3m. Logon had a 2020 turnover of €1.9m EBT of €0.14m zero debt and is net cash €0.2m. The company has 25 employees. Logon specializes in ERP, CRM, WMS and e-invoicing.

Kri – Kri : On December 31, 2021 Mr. Tsinavos sold 7.5K shares for 8.42 eur/share.

Coca-Cola HBC: CCHBC announced the issue of 28,441 shares of CHF 6.70 each fully paid (“Ordinary Shares”), following the exercise of options granted under Coca-Cola HBC’s share option plan. Such Ordinary Shares were also admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange’s main market for listed securities under Coca-Cola HBC’s block listing facility. Following this issue, Coca-Cola HBC has the ability to admit a further 25,103,275 Ordinary Shares under its block listing facility. As of 4 January 2022, Coca-Cola HBC’s issued share capital consisted of 371,795,418 Ordinary Shares, of which 2,464,448 Ordinary shares are held by Coca-Cola HBC AG and 3,430,135 shares are held by its subsidiary, Coca-Cola HBC Services MEPE, in treasury. Accordingly, as of 4 January 2022, the total number of voting rights in Coca-Cola HBC is 365,900,835 for the purposes of the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority (“DTRs”).

MOH: On January 3rd, the company bought 4.651K shares at €13.8/share for a total consideration of €64.19K. Total treasury at 587,789 shares or 0.53% of share capital at €12.661/share average acquisition cost.

Thrace Plastics: The company announced the purchase of 3,000 own shares, on 4 January 2022 for an average price of €6.7650 per share, of total value of €20,295.

  • Kind Regards, Manos Chatzidakis- Head of research

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