The Stock Exchange stopped the geopolitical loss with a jump of 4.4%

With a jump that reached 40 points, the Athens Stock Exchange “responded” today to yesterday’s dip, reaching a breath of 930 points, while it even gave the message that it can cover in a few meetings the damage done in the shadow of geopolitical developments in East Europe.

In particular, the general index closed with gains of 4.38% at 927.25 points, while today it moved between 897.18 points (+ 1%) and 930.19 points (+ 4.71%). The turnover amounted to 123.5 million euros and the volume to 51.9 million units, while 3.9 million units were traded through pre-agreed transactions.

The high capitalization index closed with gains of 4.29%, at 2,257.96 points, while at + 5.51%, Mid Cap completed the transactions at 1,565.35 points. The banking index closed with an increase of 5.91% to 698.18 points.

On a weekly basis, the general index closed with losses of 3.01%, while the FTSE 25 fell by 3.42%. However, the decline in the banking index reached 4.22%.

At the pace of geopolitical risk

Last week reminded investors that the economic climate could change dramatically overnight. It took two years of relative calm to return to a highly toxic state of fluctuations where psychology had the first say and the international factor overshadowed any other economic development, says M. Hatzidakis of Beta Securities in his weekly comment. However, the end of the week found the stock markets to wait for the end of the war which had a direct impact on energy prices.

At present we have not seen a large-scale de-escalation of gas or oil prices that justifies a greater optimism, which makes the whole situation even more fragile. Nevertheless, it seems that in the matter of duration, developments are accelerating, bringing the end of hostilities closer. Despite the fact that the Greek market outperformed foreigners, the increase in geopolitical risk showed that it does not discriminate by leading the valuations in parallel with the valuations of the rest of Europe.

In addition to the geopolitics, the week had material to be priced based on the results of the year. Coca Cola, OTE, Hellenic Petroleum and Entersoft announced better-than-expected performance, a more positive outlook for this year and satisfactory dividends.

The performance so far is supportive of the valuations, ie they push for higher prices given the investment activity in purely business level (acquisitions, RES, fiber optics) that is in progress and implies the increase of capacity and the final result produced.

Probably, the parameter of the improved fundamentals is based on the impressive return of the Market after the sharp fall on Thursday, in contrast to other periods when the investors’ reflexes had a much lower response.

The technical image

The diagrammatic image acquired a wild beauty as within a small window of six sessions the General Index fell 83 points from this year’s highs. Thursday’s session had a dramatic tone as the closing of prices took place below the simple mobile average of 200 days while at the beginning of trading there was a downward price gap (944 – 938).

With a price gap – up this time – buyers responded on Friday (896-887) by restoring the General Index above the turning point of the long-term trend, starting the reaction marginally higher than the undervalued price zones of the oscillators.

The turnover at Thursday’s meeting was the highest in the last three months and shows the intensity of liquidations which were universally spread throughout the market. Despite Friday’s reaction, the technical demand for buyers has not been met as the General Index is sold short-term after trading below the time series of 30 (938 points) and 50 (931 points) days.

However, the hourly chart flirts with the change of trend, it is within breathing distance (926 points) from the middle of recovering the lost ones from the beginning of the correction.

On the other hand, having preceded a ten-month accumulation at the levels of 880 – 950 units, it was expected that this accumulation would not fall easily and therefore some reaction was expected in the first year.

Exceeding 938 points puts the General Index back on an upward trajectory aiming at this year’s highs, however this battle is expected with great intensity due to the significant liquidations that have occurred during the downward movement of last Thursday. Therefore, it is not ruled out that the split will take place in two years, with the technical structure of Monday’s meeting as the main point of reference, concludes Mr. Hatzidakis.

On the board

On the board now, Biochalco jumped 7.86%, with Sarantis, Hellenic Petroleum, Eurobank, Ethniki, Piraeus, Aegean and Ellactor following with an increase of more than 6%. Lambda, ELHA and Motor Oil gained more than 5% and Mytilineos, Alpha Bank and Coca Cola more than 4%.

The increase in PPC, IPTO, GEK Terna, Terna Energy, EYDAP, Titan and Quest exceeded 3%, OPAP strengthened by 2.63%, while OTE and PPA recorded gains exceeding 1%. Jumbo closed unchanged.