Athens Market Welcomes Euro Decisions
Greek market welcomed warmly the agreement of Euro leaders. On Thursday, the General Index opened with impressive rise, moving above 800 units, while banks are at the centre of buying interest.
Moreover, the General Index recorded early profits of 4.84%, while bank surged by 14.76%. The trading turnover is increased, reaching €30 million.
However, market analysts note that this enthusiastic climate in bank stocks is not justified, since even shareholders would be suffer losses by the new shares issue due to nationalization.
But some optimistic market sources note that the markets had already priced extreme scenarios, such as exiting the euro and banks’ collapse, so this reaction is justified.
However, volatility should not be ruled out, as major profits and different estimates of investors may bring fluctuations.
Buyers focus on National Bank, Alpha Bank, Eurobank, Hellenic Postbank and ATEbank, which all post double-digit profits.
FTSE20 index rises by 4.15% at 315.12 units, with first resistance level at 325-327 units.
Eurobank Equities expects transaction activity to be high today as investors digest the impact from the EU plan to deal with the sovereign risk, while Piraeus Securities commented that the results of the EU summit is lifting some concerns.
Proton Bank expects the domestic market to react positively, despite the negative implications for the banks’ shareholders due to their recapitalization.
Market is expected to react positively in yesterday’s decision for a 50% haircut on Greek debt, according to Beta Securities. Decisions require demanding bank recapitalization and this is expected to impact 3Q results, Beta added.
(capital.gr)