Stock market: Plunge to 780 units with bank sell off

To the lowest levels of the last 16 months, i.e. since February 2021, the Athens Stock Exchange plunged today, losing the last remaining supports this year with characteristic ease and without defenses, in the shadow of increased concerns about the global recession but also electioneering in the country.

In particular, the General Index closed with a fall of 3.21% at 779.68 points, while today it moved between 778.84 points (-3.32%) and 808.44 points (+0.36%). The turnover amounted to 82.3 million euros and the volume to 38.7 million pieces, while 0.8 million pieces were traded through pre-agreed transactions.

The high capitalization index closed with a fall of 3.83%, at 1,854.32 points, while the Mid Cap ended trading at -2.82% at 1,251.86 points. The banking index closed down 9% at 443.16 points.

Triple whammy…

The domestic economic environment, despite the recovery of business agreements and the intensity of rumors on the front of acquisitions and mergers, does not seem to move the stock market which is under the constant influence of the international factor and also of the rhetoric which has recently gained a dominant position in the news .

Recession fears due to aggressive tightening, persistent inflationary pressures, and the risk of early elections have created a difficult mix in the Greek market, which does not allow purchasing power to take initiatives, even at these lowest levels of this year. As much as the valuations are attractive, when the prospects look cloudy, the buyers will not be able to unfold their strategies, says a stock market source at Capital.gr.

If you add to the above mix the great uncertainties that exist in the last months in the international markets, then one can easily understand why the AXA was not able to change the level this year and recover the 1,000 units after many years, as the market initially hoped. And even more worryingly, the outlook for the rest of the year is even bleaker, especially as winter sets in and Europe risks experiencing an energy crisis of unprecedented intensity.

AXA corrects all 2020-2022 movement

In the end, the market does what it is supposed to do even if it is full of deals and good results, comments Ilias Zacharakis of Fast Finance, referring to the current image of the ASE. According to him, there are also such periods since Greece, after years of recession and inaction, made a turn as an economy and found before it the possible change of trend of foreigners.

War and inflation result in considerable unrest. The 10-year bond may have climbed above 4%, from the 0.50% it had been at, but Greece has no immediate need to go to the markets. The exact same thing has happened to several companies that have planned and have full coffers for their plans from the major bond issues in the last 2 years. According to Mr. Zacharakis, in the current phase the market is correcting all the movement of 2020-2022 without seeing results and deals. This happens in a big trend either up or down.

On the dashboard

On the board now, Eurobank sank by 11.63%, Piraeus by 10.89% and Alpha Bank by 9.35%. The drop was over 4% in Lambda, Ethniki, ELHA and PPC, over 3% in Mytileneos, ADMIE, GEK Terna, EYDAP, Hellenic Petroleum and Jumbo.

The losses in PPA and OPAP exceeded 2% and in Quest, Aegean, Terna Energy and Titan 1%. Viohalco, OTE, Motor Oil and Coca Cola closed down slightly, while Ellactor and Sarantis closed unchanged.