Market Monitor – Market Comment – In the Spotlight…

Non-banking chips led the local stock index to a significant recovery on Wednesday before the first vote for a new president took place, with traders buying into the optimistic scenario from the government camp that “it will reach the target of 180 votes” of the third vote on December 29.


However, the less-than-expected result of Wednesday evening’s vote is likely to put this outlook on question in today’s session. General index closed on Wednesday at 862.06 points, rising 3.33 percent from Tuesday’s 834.24 points. Turnover came to 92.6 mn, up from Tuesday’s 89.6 mn.


We expect the market to re-adjust expectations on the downside today. However there is still plenty of time for changes until the third vote and political developments related to the presidential election will continue drive investors incentives accordingly.


In the Spotlight


Greece:  In the first round of presidential elections yesterday, the govt’s candidate Mr Dimas received 160 votes while 135 MPs declared a ‘present’ and 5 MPs were absent. The outcome of the first vote appears to be below expectations (162-165 votes were expected), increasing the likelihood for an inconclusive presidential vote which will lead to early national elections at the end of January 2015. There are still two rounds, one on December 23 at 12:00 Athens time and a third and final round on December 29 which requires 180 ‘yes’ votes.


Forthnet: Wind Hellas head Nassos Zarkalis said on Wednesday that the due diligence of rival telecommunications company Forthnet will soon be completed and a joint binding bid by Wind and Vodafone for the country’s main alternative telecom supplier will come after the Christmas holidays. The chairman and chief executive of Wind added that while Forthnet’s case has indeed been delayed, that is not on account of interested buyers Wind and Vodafone. He added that the strategy drafted in cooperation with Vodafone for the acquisition of Forthnet on a 50-50 basis remains intact as the market demands further concentration. Zarkalis also noted that Vodafone has not yet exercised its right to acquire Wind-owned Forthnet shares amounting to a 13.25 percent, to take Vodafone’s holding to 19.5 percent from its current 6.25 percent.


Plaisio: The company’s EGM approved yesterday:

¡  bond loan issuance of up to EUR15mn through a private placement and a share capital increase worth EUR220,800

¡  share buyback program of up to 662,400 common nominal shares (representing 3% of total) at a price range of EUR3 per share (minimum) and EUR10 (maximum) over the next 24 months.


Sarantis: Yesterday’s EGM approved the issuance of one or more bond loans up to EUR150m (on top of EUR17m existing outstanding loans). Given Sarantis strong earnings momentum (2013a-16e EPS CAGR of 18%) – thanks to upbeat domestic sales (+13% y-o-y in Q3 2014) and solid CE Europe footprint – robust balance sheet and FCF generation ability, we believe that bond loan issuance could facilitate potential new deals home and abroad.


Cyprus/Banking Sector: Cypriot banks’ reliance on Emergency Liquidity Assistance, or ELA, which is extended by the Nicosia-based Central Bank of Cyprus stood at EU7.47b at end- November vs EU7.68b at end-October


PDMA: Greece sold yesterday 13weeks €1bn notes with a uniform yield of 1.9%. Previous auction yield at 1.8%.


OPAP: Reportedly, First Instance Court of Athens rejected the application made by Agents’ Federation to cancel the call for expression of interest for the development of the VLTs network. In other news OPAP will hold an EGM today to decide on extraordinary dividend.


Grivalia Properties: The company announced that it will not proceed with the acquisition of the third warehouse at Aspropyrgos, stemming from a failure of a mutual satisfactory agreement between the Company and the seller on matters concerning the technical due diligence of the property; the Company has already acquired, on March 2014, two out of the three warehouses representing 84% of the total leasable area of this portfolio.