By Alexandra Tombra
The last defenses fell today at the Athens Stock Exchange, which, no matter how hard it tried, failed to control the “marking” of the sellers, now losing the level of 800 units. After all, the image of the international markets, as well as of the bonds, did not leave much room for the few buyers to cover the oversupply that existed today.
In particular, the General Index closed with a drop of 2.39% at 798.11 points, while today it moved between 819.59 points (+0.24%) and 795.76 points (-2.67%). The turnover amounted to 61.43 million euros and the volume to 25.53 million pieces, while 1.76 million pieces were traded through pre-agreed transactions.
The high-cap index closed down 2.68% at 1,916.25 points, while the Mid Cap closed at -1.67% at 1,288.48 points. The banking index closed with losses of 3.76% at 525.17 points.
For the week, the general index lost 4.55% and the FTSE 25 fell 4.79%. The banking index fell 5.88% in the five-day period.
At the same time, the pan-European Stoxx 600 index plunged 2.6% to 389.50 points. The Stoxx 600 is now heading into a bear market, recording total losses of more than 20% since its January highs. Germany’s DAX fell 2.5% to 12,216.75 points, France’s CAC 40 lost 2.3% to 5,784.84 points, while Britain’s FTSE 100 fell 2.2% to 7,001.29 points. Regionally, Italy’s FTSE MIB plunged 3.3%, while Spain’s IBEX 35 fell 3%.
The situation is not better in the bond market either, with the Greek ten-year yield at 4.67%, the Italian at 4.24% and the German at 2.08%, for the first time since 2008. The deterioration is also rapid. of the UK 5-year bond, which is currently a breath away from 4%, from 0.82% starting in 2022.
Five consecutive declining weeks were completed by the General Index losing the levels of 800 units at the close on Friday’s session, according to M. Hatzidakis of Beta Securities. Although the wave of consecutive liquidations is not unprecedented for the recent Greek stock market data, this time it is dictated almost exclusively from abroad.
The increase in the cost of money in combination with the energy crisis has created a highly negative mix of factors that inhibits investment activity. Subsequently, the revision of the estimates for the depth and duration of the recession in the main economies of the world as well as the increase in the risk premium for the shares did not leave much room for the domestic market to diversify, while at the end of the week it also showed characteristics of systemic outflows.
Equity pressures were not qualitatively different despite good news on the earnings front and record earnings for listed companies this year. At the moment the parameter of profitability seems to have completely left the investment strategy and the orientation is mainly about the protection of the capital. Administratively this is equivalent to a white towel since the reduction of positions does not take into account individual perspectives and valuation indices but only weightings in the market exposure.
Although valuations have fallen below €60bn it is still too early to talk about a universal buying opportunity. The board has individual cheap valuations and good dividends, but no catalyst to pay for good fundamentals. Therefore the market will remain tied to the trend of foreign markets, looking for levels that will be an exaggeration for a local reaction or some news of decisive importance (end of war, de-escalation of inflation, etc.) to return more calmly to business fundamentals. Until then, the stock market environment will remain nervous and the first reason will be negative news.
Technically, the General Index will hardly avoid meeting the new lows of the year since the diagrammatic picture looks particularly negatively charged. Defense lines at 830 and 810 fell without much of a fight, with the market resuming a bearish trend in volume and trading after the 800 break.
Although the General Index entered undervalued price zones, it is possible to see the local easing of the movement towards 780 units, since no reliable intermediate level of support intervenes earlier. As in the past, the weakening of trading volumes will give us a first indication of a short-term reversal of the trend, concludes Mr. Hatzidakis.
On the dashboard
On the board now, Piraeus closed with losses of 5.18%, with Ethniki finishing at -4.03%. The drop was over 3% in Alpha Bank, OTE, Eurobank, ELHA, OPAP, Aegean, Jumbo and Terna Energy, while over 2% in Mytilene, Lambda, Ellaktor and Hellenic Petroleum.
The losses in Coca Cola, ADMIE, Biohalco, Quest, GEK Terna, Titan and PPA exceeded 1%, while the drop in Motor Oil and PPC was small. Sarantis finally closed unchanged, while EYDAP gained 0.41%.