New records for the S&P 500 andthe Nikkei, along with rising oil prices, as traders continue to buy shares in tech giants despite the lack of an imminent U.S.-Iran deal.
The (futures) price for Brent stands at $97.12, the yield on the 10-year U.S. Treasury note is at 4.474%, and the VIX/CBOE is down to 15.77 points.
S&P 500 futures are trading at a marginal discount, with the Athens Stock Exchange looking beyond Wall Street’s “window display” of record highs, highlighting the less visible side of the New York paradox. A situation that traders are obviously well aware of, which is why the high level of volatility/risk is being maintained at these levels.
Buyers are returning to Frankfurt, Paris, and elsewhere, despite IsabelSchnabel’s warnings about high inflation, reinforcing the certainty of an interest rate hike by the ECB at its June 10–11 meeting.
Buyers returned to the European banking sector, with a key development being UniCredit’s further increase in its stake in Commerzbank’s share capital, approaching the critical 30% threshold—a move whose handling by Berlin remains to be seen.
Against this backdrop, both domestically and abroad, investors in Athens needed no more than an hour or two to align with their counterparts in Europe, snapping up nearly the entire supply that came to market, delayed, following Monday’s holiday.
While the change in the General Index was marginally positive at 2,374.48 points, but with PPC shares trading intraday very close to their high of 22.50 euros, Motor Oil impressing with a 6.54% jump to a new all-time high of 39.40 euros, and blue chips such as Viohalco (21), HelleniQ Energy (10.30), ElvalHalcor (5.28), Allwyn (12.94), Cenergy Holdings (25.54), as well as AIA (10.31), OTE (18.20), and EYDAP (10.68), with buyers dominating the market.
Turnover stood at 324.5 million, with 39.01 million shares traded—20.34 million in banking stocks—and 63.75 million via pre-arranged orders.
Large block trades, mainly in National Bank and PPC, suggest a repositioning of holdings, anticipating new highs, with the market capitalization of listed companies reaching 175.7 billion (boosted by PPC), as longs aim to surpass 2,400 points and reach a new high above 2,408 points.
Given the momentum gained in May, the target is considered achievable, with brokers also pointing to increased liquidity flows from dividend distributions, alongside corporate developments. Furthermore, the market’s “opening” to a new sector—short-sea shipping—is expected to attract new capital. Both the successful “debut” of Safe Bulkers’ shares in dual listing and Poly Hatzioannou’s reference to upcoming listings favor the long side.
On the business/investment front, Lamda Development ’s management is issuing yet another corporate bond; ADMIE is in the final stages of its rights offering—in mid-June; and at Ideal Holdings, they are preparing to offer shares—the listing of Attica Department Storeson the stock exchange—following ADMIE.
Meanwhile, developments are underway; for example, Motor Oil is strengthening its position in the Circular Economy by acquiring 60% of EN.Act, GEK TERNA has become the ninth member of the MSCI Greece index, and “strong hands” are increasing their stakes in EYDAP, as well as in the share capital of HelleniQ Energy. At a time when EKTER is undertaking a series of new projects, KRI KRI is valued at one billion euros, Intracom Holdings is bolstered by goodwill in subsidiaries/holdings (as illustrated by Eva Kantilari’s coverage of critical projects in tourism, entertainment, and real estate).
The banking sector remains the leading sector, with Jefferies raising its target price for Alpha Bank shares to 5 euros, and the ex-dividend date for National Bank set for the day after tomorrow, Friday—shareholders registered by the close of tomorrow’s session are eligible.
The DTR stands at 2,724.65 points, after fluctuating between 2,698.63 and 2,751.53, with the 2,700 level seeking confirmation as a new (higher) support level (at the weekly “close”).