Investor sentiment was positive during the last trading session in May. Reports that the U.S. and Iran have reached a preliminary agreement to extend the ceasefire for 60 days give buyers a clear advantage and the opportunity to “close out” the five-month period on a positive note.
The response was immediate, with a significant decline in oil prices, bond yields, and leading indices, accompanied by a corresponding rise in stocks. Brent crude at $92.05, the yield on the 10-year U.S. Treasury at 4.457%, the VIX/CBOE at 15.85 points, and S&P 500 futures trading at a slight premium.
The DAX 30 is at 25,121 (0.09%), the CAC 40 at 8,231 (0.52%), and the General Index on Euronext Athens at 2,381 (1.41%).
Led by the banking sector and supported by PPC, long positions are aiming for the best possible close to May (and the first five months), while rebalancing is expected at the end of the session.
Order flow was satisfactory during the first 45 minutes of trading, with the DTR at 2,714 (1.77%), the FTSE 25 at 6,044 (1.44%), and the FTSE Mid Cap at 3,116 (1.14%).
The pre-market session had already signaled a focus on PPC, bank stocks, and specifically 4-5 blue chips as the center of long positions.
Orders for PPC shares were at €22–22.16, in yet another session of increased trading volume. The weekly gain stood at +7.48%, an exception to the rule that capital increases and new share offerings are typically accompanied by selling pressure and a decline in price.
The monthly gain for the stock stands at 22%, “freeing up” liquidity, part of which is being reallocated to bank stocks, blue chips, and specifically mid-caps.
Buyers outnumbered sellers in Eurobank (3,928), Piraeus (9,086), National Bank (14,86), Alpha Bank (3,873), and CrediaBank (1,288), which ranks sixth in the relevant list. The increased trading volume followed the execution of a pre-arranged order for 700,000 shares of CrediaBank at €1.28, shortly after 11:05 a.m.
Steady inflows were also seen in GEK TERNA (43.16), Metlen Energy & Metals (41.36), Allwyn (12.49), Jumbo (23.58), OTE (18.32), and others.
With buyers in shares of companies benefiting from developments in Iran, AEGEAN at 12.29 (1.57%), and (1.02%), with a related E2D report on the fundamentals and technical limits for both.
The ratio of shares with positive to negative performance stands at 82:22, indicative of the prevailing market sentiment. Leverage is satisfactory for specific mid-caps. New all-time highs at €27.25 for KRI KRI, €2.56 forUnibios, and €3.84 for Intracom Holdings.