X.A – Beta Sec: Market Monitor- Market Comment- In the Spotlight (22/12)

X.A – Beta Sec: Market Monitor- Market Comment- In the Spotlight (22/12)

Market Comment


The imported worries about the impact of the new strain of the coronavirus, along with the impasse in the BREXIT deal discussions, took a heavy toll on the local stock market on Monday, although the benchmark almost halved the losses it had suffered mid-session in the end. Today’s reaction is important as to the course of trade in this shorter week, showing whether the new strain was just a pretext for the price drop.


The Athens Exchange (ATHEX) general index ended at 769.62 points, shedding 3.80% from Friday’s 800.06 points. The large-cap FTSE 25 index contracted 4.06% to close at 1,838.08 points. FTSE Mid Cap registered losses of 3.385 to come down to 1,056.36.  The banks index nosedived 6.39%, as Piraeus slumped 9.52%, Alpha parted with 8.07%, Eurobank gave up 5.32% and National ended 4.90% lower. Coca-Cola HBC fell 5% and Motor Oil conceded 4.81%, but Sarantis earned 0.11%.


In total only 16 stocks bucked the trend and posted gains, 110 declined and 21 remained unchanged. Turnover amounted to €110.7mn, down from last Friday’s €112mn.


A volatile session expected today with final mark dictated by international markets and developments on the coronavirus new strain evolution. We consider this as an opportunity for building up positions in selective big and small cap companies with strong fundamentals in view of the upcoming economic recovery in 2021.


¢     In the Spotlight


Greece/Current Account Balance: Greece’s current account balance showed a deficit of €767mn in October, widening €90mn y-o-y, due to a decline in the services surplus, data from the Bank of Greece showed. In contrast, the balance of goods and the primary and secondary income accounts improved. “A €615mn decrease in the deficit of the balance of goods is attributable to the fact that imports declined at a faster pace than exports. Lower exports and imports, at current prices mainly reflect a decrease in international oil prices,” BoG said. Total exports of goods fell by 9.2% while the corresponding imports dropped by 18.0% at current prices. October services surplus dropped €787mn y-o-y, amounting to €851.5mn due to lower net travel receipts, as non-residents’ arrivals and the corresponding receipts fell by 65.6% and 64.0%, respectively. In the January-October period, the deficit of the current account widened by €8.6bn y-o-y and stood at €9.4bn.


Greece/Economy: Finance Ministry said the government decided to extend by three months the application deadline for the “GEFYRA” program, the temporary mortgage instalment scheme which protects the primary residence of the COVID-19 affected households. Borrowers can apply for the scheme until March 31, 2021. Under the GEFYRA program, borrowers with a consistent payment record will receive a 90% subsidy of their monthly instalments in the first three months, while borrowers who have already settled their mortgages will receive an up to 80% subsidy. The scheme will last nine months while payments will start no later than April 1, 2021. The first round of payments worth €9.9mn started in November and corresponded to 42,449 mortgage loans and 26,059 borrowers.


MYTILINEOS: On December 18, the company bought 12,000 own shares at €11.5342/share for a total consideration of €138.410K. Total treasury at 4.1974% of share capital or 5,997,692 shares. Mytilineos said it has acquired a 50MW solar farm in Spain from Viridi RE. The solar farm is located in the South East of Spain and specifically in Andalucia. No financial details were disclosed. “This is an area that benefits from one of the best irradiations in Spain and thus is essential for investing in solar activities,” Mytilineos said in a bourse filing. The Jaen project is ready to build and the construction is scheduled to start in the first quarter of 2021. The Solar Farm will be connected to the high voltage Endesa substation.


TERNA ENERGY: The company was granted with licenses for the construction of 360 new wind power MWs in South Evia region (Karistos) budgeted some €585mn.


NBG: National Bank board approved the initiation of the Frontier €6.1bn securitization. Recall that NBG management has stated that the Frontier’s successful conclusion would reduce NBG’s current NPE stock by nearly two thirds.


MOH: On December 18, the company bought 5,500 own shares at €11.93/share for a total consideration of €66.615K. Total treasury stands at 230,227 shares or 0.21% of share capital.


ELLAKTOR: Real estate subsidiary REDS awarded for €48.3mn the development of the Alimos Marina project.


FOURLIS: On December 18, the company bought 11,000 shares at €3.8214/share for a total consideration of €42.035K. total treasury reached 1.1615% of share capital or 604,051 shares.


EUROPEAN RELIANCE: On December 18, the company bought 3,460 own shares at €4.60/share for a total consideration of €15.917K. Total treasury stock now stands at 788,821 shares or 2.8681% of share capital.


TECHNICAL OLYMPIC: Its subsidiary T.O.Shipping LTD participated with a 15% stake in KLAIPEDA MARITIM LLC which acquired a 6,050 TEU ship for $1.99mn.


MOTORDYMANICS: The company acquired on December 21 2,564 shares at €1.1/share for a total consideration of €2.82K. Total treasury stock stand st 0.11% of share capital or 33,274 shares.


AVE: Extraordinary GM clears the conversion of 5,403,850 preferred shares to ordinary ones at an exchange ratio 1:1.


FORTHNET: On December 23, 85,181,719 new shares related to the conversion of an equal number of bonds to shares start trading.