Sellers regained the reins of the domestic market, as part of consolidating some of the gains from the two-day upward reaction on August 6-7, following the -6.27% “Black Monday” (August 5). The backdrop remains volatile and the investment psychology vulnerable, with a lack of risk appetite prevailing. The correction in European markets acted as a “buffer” for Athens, which resonated with the negative sentiment.

In more detail, on Thursday (8/8) the General Index retreated by 11.83 points or -0.85% to close at 1,382.46 points, with the pressure being contained just before the close of the session. The GC moved between 1,375.27 (low of the day) and 1,388.86 points (high of the day) and again increased the distance from the psychological threshold of 1,400 points. Subdued turnover for another day, in a logical condition as we head into mid-August.

Apart from the overseas picture, corporate performance was a key factor in shaping the sentiment on the Greek stock market. Sellers focused on Jumbo, following the upside revision of the 2024 earnings and sales guidance. The stock slid more than -5% to 22 euros, its lowest point in 14 months. Motor Oil, OTE, OTE, Alpha Bank, PPC, Aegean, AIA and National Bank were also under strong pressure. On the flip side, OPAP continued in a strong upward momentum for the third consecutive session.

Away from the daily lows

Banks finished today’s session down -0.62%, with the sector index at 1,208.97 points. The initial losses were narrowed, with banks closing near the daily highs of 1,210 points. The FTSE 25 (high cap) was down -0.88% at 3,364.32 points, while the Mid Cap (mid cap) was up +0.22% at 2,199.92 points.

Transaction activity amounted to EUR 98.343 million, with the value of packages “touching” EUR 6.679 million. Ethniki (16.752 million euros), Jumbo (11.624 million euros) and Piraeus (11.127 million euros) made a turnover of more than 10 million euros. The market capitalisation stands at EUR 96,136 billion. Negative signs for 58 stocks, positive for 33, while 29 stocks remained unchanged.

Among systemic banks, Alpha Bank lost -1.65% to 1.549 euros, followed by Ethnik (-1.48% to 7.32 euros) and Piraeus (-0.53% to 3.72 euros). On the other hand, Eurobank gained +0.61% to close at 1.9915 euros.

In the high capitalization, Jumbo “landed” by -5.33% at EUR 22.02, its lowest closing price since the beginning of June 2023. Motor Oil (-3.68% at EUR 21.96), AIA (-2.09% at EUR 7.49), Aegean (-1.93% at EUR 10.68), Autohellas (-1.91% at EUR 11.28), Sarantis (-1.71% at EUR 10.71) also recorded strong losses,36 euros), OTE (-1.56% at 14.47 euros), PPC (-1.43% at 11 euros), HELLENiQ ENERGY (-1.27% at 7 euros), Titan (-1.15% at 30.15 euros), Viohalco (-1.09% at 5.42 euros) and Hellaktor (-1.06% at 1.86 euros). On the flip side, OPAP (+1.23% to 15.61 euros) and ElvalHalcor (+1.14% to 1.782 euros) closed with gains of more than +1%.

In the mid-cap sector, Intracom Holdings (-2.42% to EUR 3.025), EHAE (-2% to EUR 4.4), Lavipharm (-1.82% to EUR 0.808) and Dimand (-1.23% to EUR 8.8) came under heavy pressure. On the other hand, Optima Bank (+1.92% to EUR 11.66), Intrakat (+1.41% to EUR 5.03), Fourlis (+1.08% to EUR 3.73), Austriacard Holdings (+1.07% to EUR 5.68) and Ideal (+1.06% to EUR 5.73) were up at least +1%, with the latter receiving a boost from the half-year results announced today.

The negative catalysts, results and MSCI

Today’s correction was mostly imported and called into question critical support points. The return to losses came after a two-day gain of almost +4% in the HH. The first supports, which were seriously threatened today, were located in the 1,370-1,375 area, which is the 200-day moving average (SMO).

The negative sentiment in the markets is due to the fact that investors are trying to weigh the impact of the possible entry of the US economy into recession, especially since the Fed refuses to start monetary easing. The thorn in the side of the Middle East remains a thorn in the flesh, as the sirens of war have not ceased to sound in the region. The geopolitical risks are also being keenly felt on the Russian-Ukrainian front, following the declaration of a state of emergency in the Kursk province.

“This week’s trading has reminded everyone that in the stock markets all eventualities are possible and that for the available investment capital the motto “stay alive to fight tomorrow” applies,” stresses in his weekly commentary Mr. Petros Steriotis, a certified technical analyst and member of the British Society of Technical Analysts.

“The widespread view that dip buying will prevail again will be judged in practice. Similarly, the ‘panic crisis’ that started on the inflated tech Nasdaq and in Japan does not imply that profitable Greek listed companies with tidy balance sheets and a positive outlook will not continue to appreciate,” he adds.

The spotlight fell on Jumbo today, as management lowered the bar for 2024 sales to 4%, from the original guidance of 8% to 10%. In fact, profitability is expected to “flirt” with last year’s levels, as it noted that there is no normalization in the food chain. Bank of Cyprus is also on investors’ radars, following the board’s decision to re-list it on the Athens Stock Exchange.

After OTE and Coca Cola on Wednesday, today it was Ideal Holdings’ turn to announce its first-half results before the start of the trading session. Revenue and operating profitability (EBITDA) more than doubled, while net profit increased by 43% in the first half. Petros Petropoulos SA also announces its half-year financial results today. BriQ Properties and Intercontinental International will follow on Friday (9/8).

Official announcements regarding the quarterly revision of MSCI indices are scheduled for Monday, August 12. It is recalled that the MSCI Greece Standard Index consists of 10 stocks, namely OTE, OPAP, Jumbo, PPC, Eurobank, Alpha Bank, National Bank, Piraeus, Metlen and Motor Oil. Possible inclusion of Titan. If changes are made, they will come into effect on September 2, while investors will start taking their positions from August 30.

Gains on Wall Street, losses in euro markets

Thursday’s session on Wall Street started with a dynamic rise, with new US labor market data being the positive catalyst traders were looking for. The major indices are trading between +1.3% and +1.7%. Fewer than expected new claims for unemployment benefits were reported, countering further signs that the labor market is weakening. However, investors remain cautious as fears persist about the direction of the US economy as the Federal Reserve delays interest rate cuts.

On the other hand, it took just one day for European markets to “recover” as they returned to negative territory today. Losses of around -0.3% to -0.4% for the Milan, London, Madrid and Paris bourses, although earlier they were down more than -1%. A change of scene with a +0.1% gain in Frankfurt. The pan-European Stoxx 600 index retreats marginally to trade at 495 points.

After several days, Thursday’s session on Asian stock exchanges was held in mild tones. Mixed signs and changes of less than +/-1% were the main features, with investors taking some “breathers” after the roller coaster that preceded it, especially as far as the Nikkei is concerned, in the wake of the carry trade between the yen and the dollar, which brought unprecedented turbulence to the Japanese index.