Beta Securities: Tuesday, September 07, 2021 Market Monitor- Market Comment-  In the Spotlight

Tuesday, September 07, 2021

Market Monitor


¢    Market Comment

  • The Greek bourse benchmark saw an end to its losing streak on Monday, as a number of blue chips served to boost the index with their advances (helped by the rise in the European markets), despite the declines for mid-caps and small-caps that led to the majority of stocks heading lower. The Labor Day holiday in the US kept the day’s turnover at ΑΣΕ below the €50mn mark.

The Athens Exchange (ATHEX) general index closed at 915.62 points, adding 0.06% to Friday’s 915.05 points. The large-cap FTSE 25 index expanded 0.16% to end at 2,204.16 points, but mid-caps contracted 0.58% to 1,507.33 level. The banks index improved 0.39%, as National rose 1.50%, Alpha earned 0.26% and Eurobank climbed 0.24%, while Piraeus eased 0.58%. ADMIE Holdings conceded 3.03% and EYDAP dropped 1.54%, as OTE telecom collected 1.45%.

  •  In total 46 stocks recorded gains, 72 suffered losses and 43 remained unchanged. Turnover amounted to €48.1mn, up from last Friday’s €41.6mn.

All eyes focus today on Domestic Q2:21 GDP data announcement by ELSTAT at 12pm which is expected to dictate final movement on the ASE. Consensus stands for a double digit Q2:21 GDP growth. Corporate results announcement kick in tomorrow (QUEST Group, OPAP) also in focus. International positive sentiment to assist. Positive session expected.   

    In the Spotlight 

Greece/PDMA: On September 8, 2021 the Hellenic Republic will auction 52 Weeks T-Bills, in book entry form, with maturity September 9, 2022. The amount to be auctioned is €625mn. During the auction non – competitive bids can be submitted up to 30% of the auction amount. On top of that, Primary Dealers can submit non-competitive bids up to another 30% of the auctioned amount, until September 9, 2021. In the previous annual T-bills auction yield was set at -0.42%.

Greece/Banking Sector: Fitch Ratings has upgraded National Bank’s and Eurobank’s long-term senior preferred debt rating to ‘B-‘/’RR4’ from ‘CCC’/’RR6’. Fitch has also upgraded Piraeus Bank’s long-term SP debt rating to ‘CCC’/’RR5’ from ‘CCC-‘/’RR6′. The upgrade reflects Fitch’s assessment that recoveries for the banks’ SP creditors have improved because of subdued asset-quality risks, following a recovery in the Greek operating environment and progress made in their respective de-risking plans, including the sale of substantial portfolios of nonperforming exposures (NPE). “Additionally, we believe that the recent disclosure of banks’ minimum requirements for own funds and eligible liabilities (MREL) will underpin the build-up of larger resolution debt buffers and increase the protection that could accrue to SP creditors in a default scenario,” Fitch says.

  • The Recovery Rating of ‘RR4′ for NBG’s and Eurobank’s SP debt reflects Fitch expectation of average recovery prospects, “as we view the banks’ strong execution of asset-quality clean-up as materially reducing solvency risks.” The long-term SP debt rating of Piraeus is one notch below its Long-Term IDR, reflecting Fitch’s assessment that recovery prospects would be below average (RR5), instead of poor (RR6) for the bank’s SP creditors, in a default scenario.

The bank’s strong execution of de-risking plans is reducing solvency risks, but Piraeus is still less advanced than some of its Greek bank peers in reducing the encumbrance of its balance sheet by impaired loans, Fitch argues. “We estimate that unreserved impaired loans still represented about 135% of Piraeus’s common equity Tier 1 capital at end-June 2021, even after considering the completion of its ‘Sunrise I’ impaired loan securitisation.”

Greece/Economy: Provisional Q2:21 GDP data to be released today at 12pm. Consensus stands at an above 9% GDP growth for the quarter.

MYTILINEOS: The company announced that through its Renewables and Storage Development (RSD) Business Unit has signed an agreement with Enel Green Power Romania SRL, part of the Enel Group, for the sale of approximately 90MW solar portfolio in Romania, consisting of two solar farms, planned to achieve commercial operations by the end of 2022 / beginning 2023. The projects are developed in cooperation with Renergy Power Plants.

  • The RSD Business Unit will undertake the further development and construction of the projects. These Solar Farms are located in the South Region of Romania, close to Bucharest. Specifically, the major project is Calugareni, a 63 MW Ready to Build (RTB) solar farm, with construction being scheduled to start by the end of 2021. The remaining 26MW are currently under development. Activities in the area include procedures for the development of 4GW RES portfolio of which electrification of 121.5MW has been completed.

ALPHA BANK: Alpha Bank is reportedly set to launch a new voluntary exit scheme, targeting around 800 employees. Press reports said that the scheme is expected to be announced on Friday, September 10. Recall that Alpha had booked a €96mn for VES charges in the Q1:21 results.

NBG: Frontier 1 NPE’s securitization (€5.7bn) to have completed by end September. A new securitization named Frontier 2 (€1.5bn NPE’s) to have completed by end H1:22 bringing total NPL at 6-7%.

EUROBANK: Eurobank has reportedly mandated five international banks to roadshow a €500mn senior preferred bond. The issue is part of the bank’s strategy to improve its capital base and falls within Minimum Required Eligible Liabilities (MREL) requirements. Recall, the bank had raised €500mn through a six-year senior bond which was priced at 2.125% last April.

MOH: On September 3, MOH bought 7,000 shares at €13.710/share for a total consideration of €95.97Κ. Treasury now stands at 304,324 shares or 0.27% of share capital with an average acquisition cost of €11.761/share.

PROFILE: On September 2, the company bought 1,400 shares at €5.9914/share for a total amount of €8.388K.

ALPHA TRUST ANDROMEDA: NAV as of end August 2021 stood at €38.0140/share vs a closing ASE price of €29/share (23.7% discount over NAV).

PERFORMANCE TECHNOLOGIES: AGM greenlighted FY:20 gross dividend distribution €0.09/share, 1 for 3 stock 1 for 3 (3:1) stock split, executives stock option plan and SCO of up to €5mn directed to WC and acquisitions.