The rating agency, Standard & Poor’s, maintained the rating of Greece at the credit level “BBB-“, however, it upgraded the outlook of the Greek economy to positive, from stable, which implies a possible upgrade of the debt in 12-24 months and empowering buyers to make their presence felt on the domestic stock market and achieving 4X4 in consecutive bullish sessions. It remains to be seen if the attitude of the American rating agency could be reflected in substantial inflows of foreign funds.
A positive surprise from ELSTAT’s announcements, as at the “close” of 2023 the primary surplus reached 1.9% of GDP, the budget deficit was 0.5% smaller than the official forecast and the debt recorded the second largest decrease as a percentage of GDP within the EU.
The positive image of the major European stock markets also played an important role in today’s continuation of the upward reaction, even if a completely dubious international geopolitical development could restore caution.
The new crisis in the Middle East has seen stock markets close to their all-time highs and this has increased concern and volatility for a deeper correction, as a consequence of the delayed reduction of high interest rates and low expectations for growth. At the same time and according to statements by their officials, “the central banks, recognizing the geopolitical crises and the difficulty of taming inflation, are revising their optimistic forecasts for multiple interest rate cuts”.
However, according to Christine Lagarde’s recent statements, “the ECB remains on a path to reduce interest rates in the short term, as long as there is no major shock”.
Contrary to the announcements made so far by those listed on the A.A. companies, the most likely scenario is that of a new increase in corporate profits in 2024, and this can act as a “bulk to imported pressures” if they return, as well as if business deals between listed companies continue.
Attention to the banking sector, as there remains concern over the final amount of cash distribution to shareholders, a result of the strict policy of the SSM.
The overall picture of the board is clearly better than the immediately preceding sessions, while stocks with lower capitalizations also participated in the upward movement.
The general index moved permanently with a positive sign, it reached an intra-session high of 1,420.44 points (+2%), to close at 1,420.4 points with daily gains of 1.99%, while the turnover was 105.5 million, of which 7.8 million were for “packages”.
Technically, the general index of the Greek stock market, after keeping the area of 1,360 units, remains to be seen as having the strength to move towards 1,431 – 1,435 units. On the other hand, 1360 points is the clear “stop” from buying positions, if and when the trend returns to lower levels.
Meanwhile, in a few weeks it will be seen whether the ECB will finally make the first move, cutting eurozone interest rates, or wait for the Fed.
The target price of Jumbo, at 33.4 euros, from 31.2 euros previously, was upgraded by Eurobank Equities with a new report, while giving a “buy” recommendation.
Of the high capitalization stocks with a negative change, only Autohellas closed (-4.28%), as today it cut a dividend of €0.70 per share (net amount: €0.665 per share).
On the contrary, Alpha Bank )+2.58%), Eurobank (+4.69%), Piraeus (+2.94%), Aegean Airlines (+4.33%), Coca Cola completed the transactions with the biggest gains (+2.11%), Quest (+5.66%), Lamda Development (+2.61%), Motor Oil (+2.17%), Mytilineos (+2.16%), TITC (+2 .26%), Ellaktor (+2.76%), ELHA (+3.05%) and OTE (+2.10%). Of the lower capitalizations, among others, Minerva (+12.28%), Lanakam (+8%), Performance (+7.46%) and KAIROMEZZ (+5.92%) stood out positively.
According to decision 22 of the D.E.X.A. of A.A. and following an extraordinary dispersion control on the AVE share (+2.94%), new daily fluctuation limits of ±30% on the starting price of the share applied from today.
