ATHEX – With optimism in the midst of temporary but unpleasant developments

The market after the fall that was finally caused by reasons related to statistical prehistory, when it finally regained prices above 900 points after months, did not continue to fall after closing at 903.33 points. Only on Monday there was a clear downside trading that led the market to 893.47 points. The next day we had a session with accumulation, ie assimilation of the explosion on Friday and the fall on Monday in the middle of an emergency caused by the fires and yesterday the market went up and returned to the average close to 900 units. In fact, domestic officials reported that the packages that are being traded these days are related to the inflow of fresh money from foreign institutional investors. This makes today’s session crucial for shaping the short-term trend.

In the country during the period of August this year we had, according to the analysis of Dimitris Tzanas, Investment Director of KYKLOS AHEPEY, various events that justify the market image: “The summer sloth with daily transactions hovering around 30 million euros does not allow at this stage the formation of expectations for higher levels. In addition to the negative effects of the variations of the pandemic, the multiple fiery fronts, in Attica, North Evia and other parts of the country came on top, which are already causing biblical destruction. Although the high temperatures had warned of possible forest fires, for various reasons they were not avoided.”

The market dynamics, however, as we described it, underlined the existence of constant interest, at least selectively. Because there are important positive developments in several fields that for D. Tzanas are: “Various indicators, such as the increased industrial production index published by ELSTAT, the business expectations index of IOBE, the increased inflation and the lower fear index of KEPE certify that the economic recovery has already begun. In addition, the fires do not cancel the reservations of visitors to our country, intending to improve tourist revenues in August and the coming months. As a result, buyers continue to have the upper hand even in the midst of transactional sluggishness driving the general index above 895 units which is a significant resistance limit. At the same time, the country is called upon to utilize the additional European funds it is expected to request, as the cost of disasters in the primary sector is expected to exceed 1 billion euros. With the first 4 billion euros of the Recovery Fund having already been disbursed. At the same time, there is a need to redesign the uses of funds with the formation of a new model, seeking to minimize bureaucratic obstacles “.

In the course of the market this week, the role of Bank shares was mixed as they led the rise to 903 points and slowed down the fall on Monday. But yesterday, after the role of resistance to the pressure drop in the EU, it recorded an intra-conference drop that reached 0.00% at the close. As concerns bank shares, the opinion of the Investment Director of KYKLOS SA is: “The publication of the figures for the first half of the year for Piraeus Bank and NBG was another pleasant surprise following the previous positive developments for the banking sector (deferred tax arrangements, stress non-performing exposures have declined sharply with administrations assuring that this will continue. The capital position has been upgraded. And the amount of new loans is increased). The message is clear: the banking sector is consolidating, capitalizing on itself and gradually starting to plan a credit expansion strategy.”

Based on what we have observed regarding the effect of the international climate on the dynamics of trade in Athens, there is a significant correlation. The important thing is that strong growth in the US and the resurgence of economic activity in Europe make stocks a place for investing capital. Just yesterday Goldman Sachs raised its target for the next 12 months for STOXX 600 to 520 points from 480, saying it sees “good trading activity and value” in banks, energy stocks and fixed assets. Companies that benefit from rising economic growth.