The upward reaction in the stock market is widening

LAST UPDATE 16.08

The strong upward reaction of the Athens Stock Exchange today is widening, as after yesterday the General Index approached the critical support of 780 points, today it benefits from the strong upward trends of the European markets and with the banking index counterattacking, it tests the resistance of 820 points.

In particular, the DG is moving at 822.58 points with gains of 4.17% and a significant turnover of 82 million euros, the FTSE 25 is strengthening by 4.7% and is at 1,977 points, while as mentioned above the banking index is leading in the rise with jump 8.1% to 559 points.

The issue of the Ukrainian crisis continues to be in the focus of investment attention worldwide and after some signs of de-escalation that European markets are recovering with strong gains, having already tried to show a positive reaction yesterday, but which weakened over the course of the day.

The impetus for investment psychology for the prospects for resolving the Ukrainian crisis was given by the Today’s statements by the representative of the Russian Foreign Ministry Maria Zakharova that Moscow’s goals do not include the overthrow of the Kiev government but one Jerusalem Post article According to which Moscow has presented to the Ukrainian government its “final” proposal for ending the crisis and is waiting for the response of the President of Ukraine, Volodymyr Zelensky. The report cites sources following a recent meeting between Israeli Prime Minister Naftali Bennett and Russian President Vladimir Putin in Moscow.

The proposal was described as “difficult” but not “impossible”, the Jerusalem Post quoted sources as saying, adding that “the gaps between the two sides are not great”.

It is characteristic that the German DAX makes a jump of more than 5%, the French CAC 40 is at + 4.6%, as well as the Eurostoxx 50 which moves at 3.9%, giving a “signal” of strong growth in the Greek market.

Thus, the General Index, which recorded strong losses of 3.9% yesterday, as due to a holiday, deferred the international losses on Monday, is moving today with a significant increase, in which the bank securities are leading and almost the high capitalization follows.

In any case, the pattern of intense volatility that characterizes the recent period is not expected to decline immediately, while the intense intraday trading that is observed intensifies the fluctuations.

It is important that the long-term support worked with the 780 units giving a significant reaction, but in order to build a market trend it still needs several days, enough turnover and a clear decline in volatility.

Key points are the 820 units, which DG is testing today, and then the 857 units. In general, however, caution is needed because there is the possibility of a bear market rally that usually tends to cage, but its limit at this stage of the market can be up to 900 points, from where DG acquires an upward trend.

On the board

Banks set the pace in the meeting with Alpha at + 8.4%, Eurobank at + 7.54%, NBG at + 6.7% and Piraeus at + 6.8%.

At the same time, the title of Coca Cola gives a strong impetus, which in the first hours was the only one that was moving downwards but now has a strong increase of 6.3%, while PPC is strengthened by 5.6%, Biochalco by 5.5% and ElvalHalkor by 4.6%.

Quest collects part of the strong losses recorded yesterday, moving at + 4.25%, EYDAP strengthens by 3.7%, OTE by 3.13%, Aegean by 3.2%, and OPAP by 2, 1%.

Characteristic of the climate is that out of the total shares 97 are up, 8 remain stable and only 11 fall.

M. Chachladakis