The collapse in the Stock Exchange continued

“Loyal” to the negative streak of the last few days, the Athens stock exchange remained today as well, which not only failed to keep its morning gains, but took another step down towards 800 points.

In particular, the general index closed with a fall of 0.57% at 805.79 points, while today it moved between 817.14 points (+0.83%) and 803.58 points (-0.84%). The turnover amounted to 56.02 million euros and the volume to 20.58 million pieces, while 2.37 million pieces were traded through pre-agreed transactions.

The high capitalization index closed with a fall of 0.67%, at 1,929.54 units, while at +0.68% the Mid Cap finished trading at 1,284.70 units. The bank index closed down 0.46% at 495.50 points.

For the week, the general index closed down 3.48%, while the FTSE 25 fell 3.68%. The banking index closed down 5.13%.

Tough June, tougher July

June was the most negative month of the year with losses close to 9%, practically shaping the losses since the beginning of the year (-9.28%) for the General Index, with M. Hatzidakis of Beta Securities pointing out that the deterioration of valuations both at home and abroad is also attributed to the revision of corporate earnings expectations as the horizon of uncertainties exceeds the foreseeable time limits that would justify a temporary break in growth momentum with potential for recovery. In addition, the increase in risk premium was embedded in the markets leading to outflows from stocks, bonds and cryptos.

The month that begins remains in the same pattern of uncertainties and despite the efforts of the governments to normalize the effect of energy costs on the economy the data does not seem to change much. 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 .

The sentiment is unlikely to change, at least internally the market would be looking for a far-reaching business news to avoid the weariness of the last few weeks. Therefore, the trend is dictated by the foreign market, which until the end of the month has entered a waiting process in view of the decisions on the interest rates of the ECB (21/7) and the FED (27/7).

Technical picture

Technically, the General Index is on a trajectory to re-approach this year’s lows, which diagrammatically are now difficult to avoid. The market is “hanging” on turnover and trend and in this run up to 788 – 790 there is no reference support level.

The only technical indicator that has diverged from last week concerns the oscillators, which are in tune to this year’s current lows of the General Index with short-term oversold price zones. The chances of an upward reaction in this area are increased, however the picture does not change if the reaction is not accompanied by some significant trading intensity.

The inability to exceed 840 units now makes this level the next short-term resistance and possibly the limit of exhaustion of an anemic upward reaction that will come from the strong devaluations of the General Index, concludes Mr. Hatzidakis.

On the dashboard

On the board now, OTE’s -5.01% clearly weighed on the market, as did PPC’s -2.67% and Eurobank’s -2.04%. Above 1% was the fall in Titan, Lambda, Mytileneos, Piraeus, Jumbo, Quest, Hellenic Petroleum and Terna Energy.

Sarantis, EYDAP, ADMIE, OLP and Aegean closed slightly lower, while Ellactor, Alpha Bank, OPAP, Biohalco, Motor Oil and GEK Terna closed slightly higher. Ethniki gained 1.31% and ELCHA strengthened by 1.67%, while Coca Cola’s +3.45% offered support.