Νο.1 @10:45 πμ – Το χρηματιστηριακό σημειωματάριο του μικρομέτοχου (19 Ιουνίου 2020)

Friday, June 19, 2020

  • Market Monitor 
  • Market Comment

Stocks ended down in a volatile session, keeping track with Europe’s jittery, as concerns over a second wave of covid cases seems to alert investors. General index ended at 662.39 points, shedding 1.50% from Wednesday’s 672.50 points. The large-cap FTSE 25 index contracted 1.56% to 1,603.66 points. The banks index outperformed the blue-chip one, losing only 0.75%. Alpha fell 1.45%, Eurobank parted with 0.95% and National eased 0.37, while Piraeus improved 0.64%. Among other blue chips Ellaktor dropped 6.55% and Aegean declined 4.22%, as Sarantis climbed 2,42%. In total 23 stocks posted gains, 69 suffered losses and 22 stayed put. Turnover amounted to €61.1m, down from Wednesday’s €74.4m.

Triple witching and index rebalancing should spur a lot more action compared to the rest of the week… 

In the Spotlight

Greece/EU Summit: Members of the European Council will meet via video conference today at 11:00 local time. EU leaders will discuss the issue of a recovery fund to respond to the COVID-19 crisis and a new EU long term budget. The proposal for a new recovery instrument and for the multiannual financial framework (MFF) for 2021-2027 presented by the European Commission on 27 May 2020 will be at the heart of the discussion.

Recall that the proposed recovery instrument, called Next Generation EU, amounts to €750 billion. This recovery instrument together with targeted reinforcements to the long-term EU budget for 2021-2027 would bring the total financial capacity of the EU budget to €1.85 trillion. Next Generation EU would raise money by temporarily lifting the own resources ceiling to 2.00% of EU Gross National Income, allowing the Commission to use its high credit rating to borrow €750 billion on the financial markets.

  • This additional funding would be then channelled through EU programmes and repaid over a long period of time throughout future EU budgets – not before 2028 and not after 2058. To help with repayment, the Commission proposes a number of new own resources.
  • In addition, in order to make funds available as soon as possible to respond to the most pressing needs, the Commission proposes to amend the current multiannual financial framework 2014-2020 to make an additional €11.5 billion in funding available in 2020. 

Greece/Economy: The Finance Ministry decided to extend by a month the deadline for the submission of tax declarations, which originally was due to expire at end June.  The Ministry cited the exceptional conditions due to the coronavirus outbreak.  Citizens and legal entities have until July 29 to submit their declarations. The Ministry said that still taxpayers have to pay their first monthly income tax installment at the end July. 

Greece/Unemployment: Unemployment rate dropped to 16.2% in the first quarter compared to 16.8% in the previous quarter and 19.2% in the year-ago period while the number of people out of work reached 745K. Long-term unemployment remained at high levels, at 70.5%. 

  • Also, the statistics office said that the decrease in the number of the unemployed persons, was due to the reclassification as inactive. The number of economically inactive under the age of 75, i.e. the persons who are neither working nor looking for a job, amounted to 3.3 million euros.
  • The share of the inactive persons increased by 2.5 % compared with the previous quarter and by 2.4 % compared to the same quarter of the previous year.

AthEx/FTSE: In the semi-annual FTSE Indices review, the FTSE/ATHEX Indices Advisory Committee decided no changes in the composition FTSE/ATHEX Large Cap Index and the reduction of the capping factors of CCHBC, OTE, OPAP and Jumbo in order no index constituent to have an investability weight of more than 10% in the index.

  • In relation to the FTSE/ATHEX  Mid Cap Index, EYAPS and European Reliance will be added, in replacement of Kekrops and Intralot. All changes will become effective after the close of the market. Note also that as of today’s close Hellenic Exchanges, Cenergy, Ellaktor and Fourlis will be deleted from FTSE Med index while Mytilineos is to be deleted from FTSE4 Good emerging index.

Banking Sector: Prime Minister Mitsotakis said he expects “incredibly robust” economic recovery next year, while he dismissed the need for the establishment of a “bad bank” to handle the stock of the non-performing loans for the time being. In an interview with Bloomberg, Mitsotakis was quoted as also dismissing early elections scenarios, adding that the political stability can lead to a “clear growth story.”

  • As regards as the European Stability Mechanism credit line he said that it is a good option, but the government is not considering using this tool for the time being as it is able to draw liquidity from markets on favorable terms. 

Greece/Real Estate: Greece’s nominal prime office prices firmed 4.2% in 2019 compared to a 6.5% rise in 2018, according to provisional data by the Bank of Greece. In the second half of 2019, nominal prime office prices increased 1.7% at a country level compared to the first half of the year.

  • On a geographical basis, office prices rose by 5.1% in Athens on average in 2019, 2.7% in Thessaloniki and 3.5% in the rest in the first half. Office rents increased 2.6% in nominal terms in 2019 compared with the previous half year, while in the second half alone, office rents declined marginally, 0.1%, compared to the previous half.

Also, prime retail prices increased 7.0% in nominal terms in 2019 compared with a rise of 4.6% in the previous year. Second half nominal prime retail prices increased by 1.9% compared with the previous half-year for the country as a whole. Retail rents increased on average by 1.3% in 2019, while in the second half the rise compared to the first half stood at 0.6%. 

Greece/Tourism Sector: Greece may not repeat the tourism arrivals and revenues record of 2019 before 2025, according to an Ernst & Young report on the effects of the pandemic on Greek tourism, heralding a five-year crisis for the sector. This year alone the local industry is set to lose about €10bn, it said. From the 34.4 million arrivals Greece welcomed in 2019, the baseline scenario of EY shows just 14.5 million visitors in 2020, climbing to 24.8 million by 2024.

  • Tourism revenues will drop from just over €18bn last year (€18.18bn BOG figure) to €8.9bn in 2020 and rebound to €15.2 billion in 2024. For this year, EY’s baseline scenario on the gross added value of the sector for the economy speaks of €14bn, with the favorable scenario at €16bn and the adverse one at €12bn, compared with the €22bn of last year. Greek hotels stand to lose as much as €4.46bn in turnover this year. For year-round hotels, losses will come to €1.2bn and for seasonal units the turnover drop will amount to €3.26bn. 

Thrace Plastics: The company concluded the sale of its production facility in North Carolina USA for $14.5mn though its US subsidiary Thrace Linq Inc that will cease operations. The amount will be recorded as extraordinary non recurrent gain in FY’20 and will reduce the group’s debt position. 

Intralot: Fitch Downgrades Intralot to ‘CC’; Senior Unsecured to ‘C’. The downgrade of the IDR reflects increasing risk of a debt restructuring as well as refinancing risk for Intralot’s EUR250 million bond maturing in September 2021. Intralot is currently discussing with its bondholders to modify its capital structure. Fitch views that these negotiations may result in some form of debt restructuring, which would qualify as a Default or Restricted Default under Fitch’s Criteria. 

CCHBC: Coca-Cola HBC said its CFO Imellos will step down from the role at the end of the first quarter of 2021. Imellos will continue in his role until his successor has been appointed and then remain with the Company during a transition period. Coca-Cola HBC is conducting a search for its next CFO considering internal and external candidates, and an announcement will be made in due course, it said in a statement. 

OTE: The company announced that the Board of Directors, approved the initiation of a spin-off procedure for the business sectors of Customer Service, Shops and Technical Field Operations of the Company, which will be absorbed by Companies, 100% subsidiaries of OTE Group. For the purpose of the spin-off, the 30th of June 2020, has been designated as the date for the drafting of the interim accounting statements.

  • In addition, the Board of Directors of COSMOTE-MOBILE TELECOMMUNICATIONS S.A., approved the initiation of a spin-off procedure of the respective sectors of COSMOTE MOBILE TELECOMMUNICATIONS S.A., to be absorbed by OTE Group Companies, according to the above mentioned.
  • The above decisions aim to rationalize operational structure, increase flexibility and business specialization of the Company and OTE Group. The completion of the spin-off procedure is subject to the required, according to law, approvals by the Board of Directors, the General Assembly of the Company’s Shareholders and the competent authorities. 

TERNA ENERGY: On June 17, the company bought 29,702 own shares for a total consideration of €281.485K (€9.48 avg price per share). The company trades ex FY’10 gross dividend €0.174505/share (net €0.165780/share adjusted for 3,894,741 treasury stock) on June 22. The dividend will be paid on June 29. 

Alpha Trust: AGM clears FY’19 gross dividend distribution €0.1765/share (adjusted for 115,044 own shares/treasury stock, net €0.1677/share). Dividend ex-date June 25. Dividend payment July 2. 

Elton Chemicals: AGM approves FY’19 gross dividend distribution €0.04/share (net €0.038/share). Dividend ex-date on July 27. Dividend payment July 31.  

AEGEAN AIR: The company amended its AGM for July 21. 

KLOUKINAS LAPPAS: The company will publish FY 2019 financial statements on June 26 after market close. AGM on July 21. Dividend ex-date on September 14. Dividend payment September 18. 

ATTICA BANK: Q1’20 financial results to be published on June 22 after market close. 

MYTILINEOS: On June 17, the company bought 40,000 own shares at €8.0131/share and a total consideration of €320.522K. The company now owns 540,029 shares or 0.3779% of share capital. 

OTE: On June 17, the company bought 53,277 own shares at €12.3499/share for a total consideration of €657.967K. OTE now controls 3,878,058 total shares or 0.825% of share capital. 

PASAL: As of today the shares of the company are traded on the ATHEX without the right to participate in the share capital increase, with the issue of 14,967,936 new (CR) shares, at an issue price of €0.67 per share. The rights’ trading period is set from June 24, 2020 to July 2, 2020, included. The rights’ subscription period is set from June 24, 2020 to July 7, 2020, included. The fluctuation price limits of the share price only for the trading session today June 19 are set as follows: +20% at the closing share price of the ATHEX last trading session (18/06/2020): €0.7250 and -20% at the adjusted share price: €0.6750. 

BRIQ PROPERTIES: On June 17, the company bought 3,000 own shares at €1.666/share for a total consideration of €5K. 

Other FY:19/Q1:20 results: 

ELVE

2018

2019

Y-o-Y

EUR thous.

FY

FY

(%)

Sales

24,548

27,801

13.3%

EBITDA

1,770

3,090

74.6%

EBITDA Mrg

7.2% 

11.1% 

+390 bps 

Net Income

501

887

77.0%

Net Mrg

2.0%

3.2%

+115 bps

REVOIL

2019

2020

Y-o-Y

EUR thous.

Q1

Q1

(%)

Sales

187,030

169,110

-9.6%

EBITDA

2,470

2,210

-10.5%

EBITDA Mrg

1.3% 

1.3% 

-1 bps 

EBT

910

780

-14.3%

EBT Mrg

0.5%

0.5%

-3 bps

Kind regards, 

Manos Chatzidakis

Head of research 

29 Alexandras Avenue

11473 Athens,Greece

Tel: +30 210 6478755/754

Fax:+30 210 6410139

Email: [email protected]

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