Athens Stock Market Shows Signs of Fatigue Amid 1,500-Point Consolidation, Banks Drive Gains

Today’s trading session on the Athens Stock Exchange was characterized by subdued momentum, signaling a period of consolidation following the General Index’s recovery above the 1,500-point threshold. Despite signs of market fatigue, buyers maintained control for the third consecutive day, with the banking sector leading the charge. The sectoral index for banks extended its climb, reaching a new 9-year high last seen in November 2015.

General Index Performance

In Thursday’s session (January 16), the General Index (GI) rose modestly by 3.65 points, or +0.24%, closing at 1,506.83 points. Trading ranged between an intraday low of 1,501.82 and a high of 1,509.62. The GI has now recorded a three-day gain of +1.11% and is up +2.53% year-to-date. The index remains just 0.27% below its recent high of 1,510.93 points, achieved on January 9, while the next key milestone is 1,531.04 points, a level last reached on April 13, 2011.

Banking Sector in the Spotlight

Banks played a pivotal role in today’s gains, with the PPI index closing above 1,370 points. The next notable target for the index is 1,405.80 points, a peak from November 25, 2015. Among the systemic banks:

• Eurobank stood out, closing above €2.38 for the first time since November 17, 2015 (€2.40).
• Piraeus Bank climbed above €4.20, a level not seen since March 2023.
• Bank of Cyprus surged, nearing the €5 mark with a rally exceeding +3%.

Notable Blue Chip Movements

• Coca-Cola posted significant gains.
• Cenergy Holdings and Aegean Airlines faced downward pressure.
• PPA (Piraeus Port Authority) continued its upward trajectory, marking its fifth consecutive rise and distancing itself further from the €27 public offer price submitted by LeonidsPort. Shares of Thessaloniki Port Authority also rose around +4%, closing at €29.30, with a turnover exceeding €1.3 million.

Market Commentary

Petros Steriotis, a technical analyst, remarked:
“With the General Index at 14-year highs, there’s little need to discuss the long-term trend. The market has firmly established itself above the 1,500-point milestone, driven by specific blue chips.”

On the global front, Steriotis highlighted:
“Major international indices, despite reasonable turbulence near their historical highs, have shown resilience to inflationary pressures stemming from rising energy prices, geopolitical conflicts, and potential new tariff policies from the US. While Athens Avenue is showing strength, risks tied to global geopolitical developments and potential interest rate adjustments persist.”

International Sentiment Boosts Confidence

Positive sentiment in global markets has bolstered investor confidence, particularly following the tech rally on Wall Street. Key catalysts include:

• US Consumer Price Index (CPI) data aligning with forecasts.
• Better-than-expected financial results from leading US banks.

This news has provided the Federal Reserve with room to continue its trajectory of interest rate reductions.

Metlen’s Major Investment Announcement

Metlen drew attention with its announcement of a €295.5 million investment aimed at producing bauxite, alumina, and gallium. The project, set in Agios Nikolaos, Boeotia, is within the Aluminum of Greece complex and targets exports to Europe and North America. Production timelines are as follows:

• Bauxite: Operational in 2026.
• Alumina and Gallium: Phased operations starting in 2027, with full capacity by 2028.

PPA Shares and Strategic Moves

PPA shares remain under close watch as their price continues to diverge from LeonidsPort’s €27 public offer. Notably, Belterra, owned by Ivan Savvidis, has been purchasing shares at prices exceeding the public offer, bolstering its stake in PPA.

International Market Overview

Wall Street experienced a bullish breakout yesterday, driven by robust bank earnings and favorable inflation data, which also prompted a sharp drop in bond yields. European markets followed suit, with the pan-European Stoxx 600 gaining +0.6% to trade around 517-518 points. The French CAC 40 rallied +1.7%, driven by luxury stocks, while Asian markets, including indices in Australia, South Korea, and Hong Kong, also posted gains exceeding +1%.

Summary

While the Athens Stock Exchange shows signs of slowing momentum, it remains firmly supported by strong banking performance and favorable international market sentiment. Investors continue to monitor developments in both local and global markets for potential opportunities and risks.