Painless correction on the Stock Exchange, kept 950 points

The Athens Stock Exchange completed one of the most important weeks of the last months with losses or better τικά correction, which allowed the movements of securing the profits without threatening the contact with the 950 units, which “wrote” yesterday after more than seven years.

In particular, the general index closed with losses of 0.67% at 949.39 points, while today it moved between 942.59 points (-1.38%) and 951.45 points (-0.45%). The turnover amounted to 82.2 million euros and the volume to 40.9 million units, while 10.1 million units (worth 17.5 million euros) were traded through pre-agreed transactions, mainly to Alpha Bank and Eurobank.

The high capitalization index closed with losses of 0.83%, at 2,191.99 points, while at -0.30% Mid Cap completed the trading at 1,576.35 points. The banking index closed down 0.95% at 643.03 points.

On a weekly basis, the general index closed with gains of 4.70%, while the FTSE 25 strengthened by 5.07%. The rise in the banking index reached 7.87%.

The great escape

It started in 2022 with a completely different face in relation to the “black” December and the long lateral movement of the Greek market in the last ten months, according to M. Hatzidakis of Beta Securities. The first two trading weeks of the year yielded returns on almost the entire range of capitalizations, while turnovers left the zone of indifference approaching 80 million euros on an average daily basis.

For the first time since 2014, the General Index closed at levels higher than 950 points – returning to pre-pandemic levels – while the total capitalization of the ATHEX exceeded 70 billion euros. The upward change of the scene acquires greater importance as the Athens Stock Exchange is at the top of the returns of the European Stock Exchanges and in the top five in the world. The rise of shares is accompanied by new inflows in the banking sector, a stable time point of reference for the direction of the trend of the domestic market.

Although the prevailing expectation of an upgrade of the Greek economy in tonight’s assessment of Fitch seems somewhat premature, there are many important reasons for redefining the value of shares. With the beginning of the year, it seems that the disbursement of the first package from the Recovery Fund (3.6 billion euros) will start immediately, while in January the tenders for infrastructure projects will start, which apart from strengthening the work of construction companies are expected to have a multiplier benefit in increase in demand in other key sectors of the economy.

At the same time, the “Omicron” mutation seems less aggressive in terms of its morbidity, eliminating the possibility of wider restrictions on economic activity, improving the degree of forecast for the year. As for the results of the fourth quarter, the first indications from the retail trade were encouraging, reassuring the initial reservations.

Regarding the rally of banks, the reasons should be sought in news related to the satisfactory course of securitizations, the increase in the value of real estate and the upward trend observed in shares of European banks since the beginning of the year, which opened the gap. of valuations justifying a universal adjustment move to the new data.

The technical image

Technically, the one-piece and continuous rise led the General Index to overvalued oscillator zones for the first time since March 2021, activating rather expected short-term earnings reflection. The structure of the rise is impressive: The five sessions of the great escape from the 930 units are accompanied by clear winners the buyers who prevail from the beginning to the end of the session giving after a long time the stigma of an upward market that has intensity and duration.

The history of such uptrends has shown that the correction will give a high again as soon as the oscillators are discharged, something that in terms of hourly and daily charts has taken place at Friday’s meeting which despite the discharge correction was not accompanied by high turnover, also positive . In order to reverse such a strong movement in intensity and performance, the General Index will have to return to 900 points, a scenario that is very pessimistic and unlikely based on the technical data so far. On the other hand, the 1,040 units are more visible as the upward break of 950 units does not have in front of it any significant resistance from the recent past.

Dashboard

On the board now, PPC lost 2.80%, as the negative protagonist of most of the meeting, with Aegean, Ellactor and Ethniki also recording losses of more than 2% which they widened at the end. OPAP, OTE and Quest closed above -1%.

Viohalco, Coca Cola, Eurobank, Hellenic Petroleum, Piraeus, Mytilineos, HELEX, ELHA, Motor Oil, Jumbo, Fourlis, Lambda closed slightly lower, with Alpha Bank closing unchanged, despite the intra-conference -1.28%.

On the other hand, IPTO shares closed higher, with Titan, Terna Energy, Sarantis and GEK Terna gaining more than 1%.