Reaction after the pressure on the Stock Exchange

of Alexandra Tombra

Another negative week was added by the Athens Stock Exchange to the report of the turmoil in the second quarter of the year, with today’s rise only acting as a reaction to the strong pressures it has received in recent days.

In particular, the general index closed with an increase of 1.24% to 825.41 points, while today it moved between 834.79 points (+ 2.39%) and 814.37 points (-0.11%). The turnover amounted to 170.82 million euros and the volume to 81.92 million units, while 39.38 million units were traded through pre-agreed transactions.

The high capitalization index closed with an increase of 1.08%, at 1,986.75 points, while at + 1.55% Mid Cap completed the transactions at 1,274.88 points. The banking index closed with a marginal increase of 0.10% to 518.96 points.

On a weekly basis, the general index closed with a fall of 4.31%, while the FTSE 25 fell by 4.43%. The banking index closed with losses of 8.53%.

Reaction to pressure

The reception of young people for the increased inflation and the acceleration of the economic tightening policy in the USA with the increase of interest rates by 75 basis points by the Fed could not have any other reception from the markets, comments M. Hatzidakis of Beta Securities. The risk premium adjustment and the “demand” for a higher fee from the securities markets led to two consecutive sell-offs, perfectly in line with the trend abroad.

The situation changed on Friday as the possible business agreement for the sale of TERNA Energy improved the climate. If we are finally close to a multi-billion dollar business deal, the Greek market is entitled to a break from the downward spiral of recent weeks.

In addition to the quantitative data of the deal, the market will evaluate the quality parameters, revising the attitude of similar companies and sectors accordingly. Otherwise, the introversion will return and the market will become stricter with the valuations but also with possible gossip that concerns other companies.

The technical image

Technically, the 850 points seemed unable to contain the momentum of the fall which eased in the short term to 814.37 points. The daily oscillators at this point did not enter oversold zones, however, the hourly charts were found in sharp devaluations, as a result of which some upward reflexes were activated.

The reaction that is in progress has a minimum end of 850 units while in the zone 859 – 854 a downward price gap is located which gave the impetus for the acceleration of the fall during the current week. Exceeding this level will not be easy, buyers will be asked to increase their trading activity in order to absorb supply given the intensity of sales that took place during the break of 850 units.

Nevertheless, the conditions for the return of the upward trend are restored to a return of the General Index above 885 points, a level at which the 200-day moving average moves, a rather difficult task given the conditions prevailing inside and outside the Greek market, concludes Mr. Hatzidakis.

On the board

On the board now, Terna Energy recorded gains of 6.81%, with GEK Terna and PPC following with + 3.88% and + 3.36% respectively. Coca Cola closed at + 2.95%, with OTE, Piraeus, Titan, Alpha Bank, Jumbo and Lambda following with an increase that exceeded 1%.

ELHA, Aegean, OPAP, Ethniki and EYDAP closed slightly higher, while Motor Oil, Ellactor, Mytilineos, PPA, Viohalko and Sarantis closed slightly lower. Over 1% was the fall in Hellenic Petroleum, IPTO and Eurobank, with Quest losing 2.13%.