Το χρηματιστηριακό σημειωματάριο του μικρομέτοχου – Τετάρτη 8 Ιουλίου 2020

Market Comment

Bank stocks led the Greek bourse decline on Tuesday as the prospect of freezing debts to lenders for the rest of the year weighed on the credit sector. The European Commission report, which eased the recession forecast somewhat, did not appear to impress traders. Worth noting that gold futures settle at nearly 9-year high. 

The Athens Exchange (ATHEX) general index ended up at 644.12 points, shedding 1.78% from Monday’s 655.79 points with financial sector suffering the most. The large-cap FTSE 25 index contracted 0.47% to 1,587.79 points. FTSEM lost 1.16% ending at 847.03 points.  The banks index declined 3.21%, as National fell 3.73%, Piraeus decreased 3.42%, Eurobank parted with 3.30% and Alpha shrank 2.62%.

  • Fourlis Holdings expanded 3.66% and Coca-Cola HBC grew 1.52%, while OTE slumped 3.75%, Viohalco lost 3.27%, Public Power Corporation conceded 3.09%, Sarantis was down 3.08%, Motor Oil gave up 3.06%, Ellaktor sank 2.76% and OPAP gaming company descended 2.48%. In total 25 stocks registered gains, 67 recorded losses and 21 remained unchanged. Turnover amounted to €46.34mn, down from Monday’s €37.8mn. 

Worries over a second way of pandemic evolution make investors reluctant on taking risk thus putting pressure on equities. Despite domestic bond market risk off mode the same does not mitigate to the equity market.

  • For today’s session we expect another low volume day with sideways movement and the GI hovering around current levels.

In the Spotlight 

Greece/PDMA: Greece seeks to raise €625mn through the offering of 13-week Treasury-bills on Wednesday, July 8, the debt office said. The auction will be conducted via primary dealers and the government may accept non-competitive bids of up to 30% of the initially offered amount during the auction and another 30% by Thursday, July 9. Settlement will take place Tuesday, July 10. 

Greece/Economy: The European Stability Mechanism said the Board of Directors of the European Financial Stability Facility approved on Tuesday the transfer of SMP-ANFA income equivalent amounts and the reduction to zero of the step-up interest margin on certain EFSF loans worth €748mn in total, following the Eurogroup’s green light in June. 

Greece/Trade Deficit: Commercial transactions’ trade balance posted a deficit of €1.16bn in May, down 48%, y-o-y, the statistics office of ELSTAT said. Excluding the impact of oil products and ships, the drop was at 42% Imports slipped 39% y-o-y, while excluding oil products and ships, imports were down 26%.

  • Exports fell 33% but after the impact of oil and ships, exports were down 13% y-o-y in March. In the January-May period, the trade balance showed a deficit of €7.5bn, down 21% y-o-y. Excluding oil products and ships, the deficit narrowed 20%. 

Greece/Economy: The European Commission has revised to the better its estimates over the anticipated Greek GDP contraction this year, but at the same time cut its projections for next year’s recovery. Moreover, the Commission reduced its GDP estimates for the euro area and the EU economy. Greek economic activity is seen contracting by 9.0% this year compared to the spring forecast which was for a recession of 9.7%.

  • However, EC expects a 6.0% economic rebound next year from 7.9% previously. Also, the Commission sees the euro area economy contracting by 8.7% in 2020 and grow by 6.1% in 2021.
  • The EU economy is forecast to contract by 8.3% in 2020 and grow by 5.8% in 2021. “The contraction in 2020 is, therefore, projected to be significantly greater than the 7.7% projected for the euro area and 7.4% for the EU as a whole in the Spring Forecast.” It said. 

Eurobank Holdings: AGM on July 28 to decide upon a decrease in kind of the Company’s share capital via decrease of the nominal value of each ordinary share issued by the Company by €0.0155, in order the shareholders to receive shares issued by the Cypriot subsidiary of the Company under the corporate name MAIRANUS LIMITED, which shall be renamed to “Cairo Mezz Plc” (hereinafter the “Issuer”), of an equal amount to the amount of the share capital decrease.

  • i.e. 1 share of the Issuer for every 12 shares of the Company held, as this ratio resulted from the valuation of the shares issued by the Issuer and capitalization of reserves of the Company of an amount equal to €20,400,390.19 with the increase of the nominal value of each ordinary share issued by the Company by €0.0055 for the purpose of rounding the nominal value of the shares issued by the Company at €0.22 each.
  • Approval and authorization to the Board of Directors to sell any fractional balances of shares issued by the Issuer so that the proceeds from the sale to be distributed to shareholders of the Company who are entitled to fractional balances of shares. 

GEKTERNA: The European Bank for Reconstruction and Development said it invested €57.5mn in GEK-Terna’s issuance of a seven-year €500mn bond. In 2019, the EBRD invested €18mn in the issuance of a seven-year €150mn green bond by Terna Energy, member of GEK-Terna Group. Previously, the EBRD participated with €15mn in Gek-Terna’s €120mn bond issuance in 2018. 

COCA COLA HELLENIC: The company named Mrs Kalogeraki as new Chief Operating officer. 

OTE: The company trades FY’19 gross dividend €0.55/share (net €0.527/share) on July 9. Dividend payment on July 15. 

EPSILON NET: As of today the Athens Stock Exchange decided the suspension of trading of the shares of the company in order to be transferred to the ASE Main Market (currently trading in E.NA). Public offer of 2,224,560 new shares for listing to ASE Main Market (from E.NA) to run from July 8 to July 10.  Price range set between €2.35-€2.70/share vs max upper limit of €2.80 initially announced. PE’19 between 27.1-31.1. 

PAPOUTSANIS: Sales in H1’20 advanced 45% to €20.9mn from €14.4mn in H1’19 supported by branded products, PL and soap noodles fully offsetting drop in the hotel segment. Exports amounted to €10.4mn accounting for 50% of total sales. Branded products advanced by 100% to €5.43mn aided by increased demand both domestically and internationally due to pandemic. Hotel segment retreated by 61% severely impacted by lockdown of hotel chains across the board. Domestic sales dropped by 71% while international ones came in 44% lower.

  • Contract-PL segment advanced 137% to €10.24mn due to strengthening of the cooperation with a large multinational firm and increased demand in soap, liquid soap and other hygiene products. This category was also supported by sales of antiseptic lotions to domestic industrial customers.
  • Finally, soap noodles advanced by 47% to €3.14mn due to expanding clientele and increased raw materials demand for soap production. The company proceeds with its investment plan in order to double capacity by 2021 and also aims in introducing synthetic soap production.
  • We will update our model and revert shortly. Papoutsanis trades at a projected FY’20 PE 15.6, EV/EBITDA 8.7x and is one of our top/favorite picks with a TP of €2.52/share. 

ENTERSOFT: AGM decided on no dividend distribution for FY 2019. 

TERNA ENERGY: On July 6, the company bought 9,085 own shares for a total consideration of €90.295K (€9.94 avg price per share). 

MYTILINEOS: On July 6, the company bought 50,000 own shares at €7.7644/share and a total consideration of €388.22K. The company now controls 1,030,921 shares or 0.7215% of share capital.

THRACE PLASTICS: On July 6, the company bought 2.500 shares at €1.9388/share for a total consideration of €4.85K. 

BRIQ PROPERTIES: On July 7, the company bought 789 own shares at €1.652/share for a total consideration of €1.37K.

29 Alexandras Avenue

11473 Athens,Greece

Tel: +30 210 6478755/754

Fax:+30 210 6410139

Email: [email protected]

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