Tuesday’s bank sell-off was ultimately a front-runner, as the Greek stock market made a come back above 1,420 points. Athens resonated with the positive sentiment and rebound in European markets. Several “heavyweight” stocks boosted the board.
Specifically, in Wednesday’s (3/7) session, the General Index gained 16.57 points or +1.17% to close at 1,423.56 points, just 0.01 points below the daily high of 1,423.57 points. The day’s low was located at 1,410.41 points. Essentially, the A.S.E. “absorbed” yesterday’s losses and moved further away from the two-month low of 1,400 points.
Banks returned to positive territory, despite intra-day pressure. Alpha Bank led today’s upward effort, unlike Eurobank which remained on a downward trajectory for the second consecutive day.
The energy sector provided significant support, with Metlen, Viohalco and Cenergy Holdings standing out. OTE, GEK Terna, Hellaktor, Lamda Development and Jumbo, among others, recorded strong gains.
Volatility remains in the foreground
Wednesday’s session took place in an environment of low trading and high uncertainty, with investors in a mood of accumulation and reduced volumes compared to previous days. Athens and other European markets are holding back in anticipation of elections in Britain tomorrow, Thursday, and in France next Sunday. According to analysts, the situation in London and Paris is creating conditions of high volatility on the stock markets. Already sluggish trading was kept at low levels due to today’s Wall Street semi-holiday, which will remain closed on Thursday.
Pressure was exerted by JP Morgan, via a new report, where it downgraded its domestic equity market recommendation to neutral from overweight previously. According to the US rating agency, the change is due to the South African market being upgraded to an overweight recommendation versus other emerging markets.
Cenergy Holdings was among the companies that traders turned their attention to in the wake of the announcement that the US investment in the Baltimore, Maryland, cable manufacturing plant is moving forward. The first “step” has been completed, as waterfront land has been acquired for the project, which is estimated to cost $200 million.
Hellactor is also in the spotlight following Reggeborgh Invest’s decision to partially exercise its stock option from Motor Oil. The call option covers a total of 26 million shares and Reggeborgh will use it to acquire 10.4 million shares.
Special mention for Revoil, which extended its impressive streak for the 6th consecutive session. Up +2% today for the stock, in the wake of the denial of reports of a strategic deal with a third party. As the listed company clarifies, recent trades were aimed at increasing the spread.
Meanwhile, Q&R’s general meeting today unanimously approved the issuance of a €19.1 million common bond, with the aim of using the money for future acquisitions. On the other hand, the proposal for a share capital increase of EUR 30.1 million was voted against.
Without the dividend entitlement of EUR 0.16 per share, Interlife was traded today. This will be followed on Thursday (4/7) by the dividend of EUR 0.7216 per share from OTE, with payment scheduled for 10 July.
Stability on Wall Street – Gains in Euro markets
Wednesday’s session on Wall Street began from new highs as the S&P 500 broke the 5,500 “barrier” and the Nasdaq broke that of 18,000, both closing at historic highs. The progress “seen” in inflation by Fed chief Jerome Powell was the “fuel” for the US stock market, which will be underperforming for the rest of this week due to the Independence Day holiday (4th of July). A steady start today and marginal changes for the major indices, pending the minutes from the recent Federal Reserve meeting.
European stock markets are benefiting from Wall Street’s record highs, and are recovering today. Leading the rise are indices that suffered heavy pressure on Tuesday. The French CAC 40 is up +1.3%, followed by the German DAX, the Italian FTSE MIB and the Spanish IBEX 35 at +1.1%. Investors are preparing for two national general elections, with the UK going to the polls on Thursday (4/7) and France on Sunday (7/7).
Positive signs in Asian markets, with macroeconomic data on their side. New strong rise for the Japanese Nikkei index, which gained 500 points, or +1.25%, approaching again the historical high of 41,000 points. Gains of more than +1.3% for the Hang Seng in Hong Kong, boosted by the ongoing tech rally. Intraday historical records were set by the BSE Sensex and Nifty 50 indices in India.
