The banks raised the Stock Exchange to 890 points

Over 30 points was the positive report of the week on the Athens Stock Exchange, which managed, with the help of the recovery of several index-weighted securities, to move away from its support and regain critical technical levels.

In particular, the General Index closed with an increase of 0.46% to 891.41 points, while today it moved between 893.19 points (+ 0.66%) and 888.09 points (+ 0.09%). The turnover amounted to 83.96 million euros and the volume to 32.12 thousand units, while 4.81 million units were traded through pre-agreed transactions.

The index of high capitalization closed with an increase of 0.45%, at 2,154.32 points, while at + 0.21% the Mid Cap completed the transactions at 1,426.20 points. The banking index closed with gains of 1.19% at 609.79 points.

On a weekly basis, the general index closed with an increase of 3.65%, while the FTSE 25 strengthened by 4.18%. Banking index closed with gains of 8.25%

Positive omens

The positive climate abroad enabled investors to move selectively by evaluating the quarterly results, closing the General Index on Friday very close to the high of the weekly fluctuation, according to M. Hatzidakis of Beta Securities.

The sell-off of the US indexes (seven declining weeks) provoked a reaction which was similarly exploited by the domestic investment community, focusing on companies that, either because of size or because of business news, justified better valuations.

Although it is too early to argue that the worst is in the past the interest is gradually increasing although relatively focused on a few companies. The demand remains that the flow of young people should not be interrupted as from next week the announcements of the results are limited and possibly if there are no business developments related to acquisitions, investments, etc. the market enters a new waiting cycle.

The main driver of the rise in May was the banking sector. So far the banks have been fully consistent with their promises made last year: Non-performing loans are falling in single digits, new bad loans are expected and expected in the next half of the year, organic profitability is improving and extraordinary results are strengthening the finish line.

The increase in interest rates by the ECB will boost interest income while the economic environment continues to be positively charged by the increase in tourism and projects from the recovery fund. The picture of the balance sheets in the part of new loans and NPEs was clearly much more important than the picture of the results as the way is now open for the preparation of business plans with a stronger growth imprint and in the not too distant future the reward of dividend shares.

The image that banks present in the stock market has a great degree of fairness as it reflects the progress that has been made in each operating sector as well as the proximity that exists in their ability to produce a remarkable profitability.

Technical image

The buyers took a deep breath as the technical picture showed signs of a substantial reversal of the trend in an attempt to fully return to an uptrend. The 890 units are not just the reference point for the passage of the 200-day moving average but where the 30- and 50-day moving averages converge.

As of Thursday, the MACD activated trading signals, which was also certified at Friday’s meeting. The new resistance level has moved to 910 points where correction ratios of 61.8% from the recent lows are completed.

The oscillators give enough upside margin as they move to neutral levels and the trading picture shows a gradual improvement supporting the market rise. In conclusion, the next week starts with positive omens from a technical point of view as the trend comes from an accumulation of three weeks with an upward escape dynamic, concludes Mr. Hatzidakis.

On the board

On the board now, Sarantis won 5.60%, with Ethniki following with + 3.15%. Profits in Alpha Bank, OTE, Titan, PPA, OPAP and Hellenic Petroleum were over 1%, while Motor Oil, Aegean, IPTO, EYDAP and Jumbo closed slightly higher.

On the other hand, PPC lost 3.29%, with Coca Cola and Quest finishing with -1.58% and -1.18% respectively. Viohalko, ELHA, Ellaktor, Piraeus, Terna Energy and Mytilineos closed slightly lower, with Lambda, GEK Terna and Eurobank closing unchanged.