The Greek stock market, which shifted its tone following the ECB’s interest rate announcement, once again fell short of expectations. Although it initially aligned with global market trends, it eventually diverged, trailing behind the positive sentiment seen elsewhere. The market recorded losses for the fifth consecutive day, with the latest decline breaching another support level, specifically 1,410 points.

In Thursday’s (12/9) session, the General Index fell by 6.63 points, or -0.47%, to close at 1,406.91 points, near the day’s low of 1,405.18 points. The day’s high was 1,425.17 points. This marks the lowest close since August 13, when the index was at 1,403.17 points, representing a total decline of -2.74% over the past five days. Banks faced significant pressure, with ETE emerging as the primary negative performer, while PPC also stood out among blue chips due to its notable losses.

From 14:00 onwards, Athens Avenue experienced a decline as investor reluctance to take risks became evident. The selling pressure increased just before the ECB’s announcement, which, as anticipated, reduced interest rates by 25 basis points. Although the market had briefly surpassed 1,420 points earlier, it has since retreated to the 1,400-1,410 point range, marking a one-month low.

Today’s turnover did not excite investors, with trading volumes involving several large transactions totaling nearly 30 million euros. Notably, Piraeus Bank saw two significant trades, amounting to a combined 15.594 million euros. Each transaction involved 2 million shares, with one trade priced at EUR 3.905 per share and the other at EUR 3.892.

Challenges in September and Current Market News

Diagrammatically, 1,450 is the ‘key’ level for an upward trend, while a weekly close below 1,400 could prompt many ‘sensitive’ portfolios to reconsider their positions. September’s seasonality is generally problematic for capital markets, with last week being the worst of the year for the S&P 500. However, the Athens market has managed to avoid similar declines, though this does not mean Athens is immune or receives preferential treatment,” notes Petros Steriotis, a certified technical analyst and portfolio manager, in his weekly commentary on the Athens Stock Exchange.

The upcoming private placement of 8% to 10% of the total 18.39% stake held by the HFSF in National Bank is driving investors to strategically raise funds in preparation for the placement, expected to occur in early October.

On Friday evening (13/9), Moody’s will release its assessment of the Greek economy. The American agency remains the only one to rate Greece one notch below investment grade, at Ba1 with a stable outlook.

Lamda Development and Hellenic Construction Company (Hellaktor), among other high-capitalization companies, as well as smaller firms like Geniki Emporio & Industrie and Klukinas – Lappas, will announce their first-half financial results today. Before trading begins, Alpha Trust – Andromeda has announced its half-year performance and declared an additional dividend of EUR 0.17 per share.

Today also marks the trading debut of 5.55 million new shares of Attica Bank, resulting from its merger with Pancretia Bank. Additionally, approximately 12.33 million Eurobank shares from a recent share capital increase, following the exercise of stock options by 221 bank executives, started trading at EUR 0.23. Evrofarma shares were traded without the right to a EUR 0.05 dividend, while Unibios shares were traded without the right to a EUR 0.02 capital return.

International Market Movements

Wall Street’s mood remains fragile, with sellers taking control after an initial bullish start, leading to a -0.3% decline in the Dow Jones. The market direction remains uncertain as sentiment shifts, with a focus on upcoming producer price data and unemployment benefit claims.

European stock markets continue to rise, albeit at a slower pace, with the Stoxx 600 up +0.6%. Major indices across Europe are trading up between +0.5% and +1.1%. Attention is focused on the ECB’s interest rate cut, the second such reduction in 2024, following the one in June.

Asian markets were mixed, with the Nikkei experiencing a strong recovery, gaining +3.55% or 1,264 points, boosted by Wall Street’s tech rally. South Korea’s Kospi rose +2.3%, while Chinese indices closed slightly lower.