ASE Posts Mild Profits After Gov’t Won Vote Of Confidence
Athens market moves upwards on Wednesday, after the Greek government won an anticipated vote of confidence on late Tuesday. The European Union Summit and the passing of the medium-term program are the next obstacles. Construction companies extent profits.
Despite all ruling party deputies voted yes, Greek PM George Papandreou still has to ensure the approval of the medium-term program next week, while a very crucial European Union Summit meets on Thursday in Brussels.
The domestic market welcomes the vote of confidence with optimism, however it is considered well-anticipated, Nikos Chryssochoidis, CEO at N. Chryssochoidis Securities, told Capital.gr. “Now the focus in on the adoption of the Medium-Term Fiscal Program on June 28”, he added.
According to Nikos Chryssochoidis, the market reaction is rational, but estimates that nervousness will reign in the coming days, due to the debate on the medium-term program, and because short-term investors may want to consolidate profits.
“It’s hard to foresee a steady upward trend since even the passing of the program, which is expected to provide a psychological boost, a conclusive solution for the Greek debt is not expected soon”, he stated, adding that the course of state revenues and reforms remains to be seen.
“Yesterday’s vote of confidence seems to be paving the way for the voting of the Medium-Term Fiscal Strategy Program, which in turn will bring 5th installment approval, thus removing any short term risk that might be occurring” said Marfin Analysis in a report. Market could retain previous session trend at a milder mode though, it added.
Across the board, the General Index is at 1,282.68 units, up 0.57%, after a nervous opening. The turnover stands at €39m, while a total amount of 87 shares rise, 28 decline and 32 remain unchanged.
Banks post minor profits of 0.21% at 985.66 units. Marfin Popular Bank gains 1.59%, while Bank of Cyprus rises by 0.48%.
Construction company Ellaktor retains an upward trend, posting profits of 5.29%, while Titan, Motor Oil and Mytilineos gain 2.16%, 1.29% and 1.26% respectively.
(capital.gr)