Sentiment is deteriorating across European markets, while the correction on the Greek stock market is taking on the dimensions of a mini-sell-off.
The DAX is down 2.28% at 25,724 points, the CAC 40 is down 1.80% at 8,058 and the FTSE 100 is down 2.23% at 10,541 points.
A related Euro2day.gr article looks at how false threatening phone calls are paralysing air travel in Europe; meanwhile, the price target for shares in Coca-Cola HBC is being cut by Citi.
In our earlier comments, we referred to the emergence of a hybrid state (hybrid state), with declines in indices such as the EuroStoxx Total Market Airlines, down 2.24% at 316.89 points, and the EuroStoxx Banks, down 1.31% at 286.43 points, among others, serving as an indication.
Meanwhile, some analysts regard Coca-Cola HBC as a “test case” for possible new or similar moves by Moscow/Putin, following Nestlé, Auchan and Lemana Pro.
A stock market participant summed it up, saying that part of Europe’s business community has fallen ... at the mercy of Putin’s decrees. Whether that is accurate, and to what extent, is a separate question. But the reaction from the market and funds is a fact: they are acting pre-emptively against any eventuality, he added.
Against this European backdrop, the Greek stock market could hardly be expected to behave differently, particularly in a “shallow” market where all manner of “foreign hands” control €125bn of the €187bn total market capitalisation of listed companies.
Selling in Coca-Cola Hellenic shares remained steady in London, with the price down as much as 0.87%; the sell-off has also spread to Athens.
The share has fallen from €50.50 to €48.40, with orders as much as 3.37% lower, extending yesterday’s sell-off. For now, potential buyers are positioned at lower levels, while parallel “sell” positions have been activated in the derivatives market. The number of futures contracts stands at 308, trading at a discount of up to 3.26%.
Meanwhile, short positions have either been opened or are increasing across all equity futures contracts, naturally serving as a hedge against the correction in the underlying market. According to three brokerages, no forced selling in leveraged/margin accounts had been triggered shortly before 14:00. It remains to be seen what happens as the session progresses if sentiment deteriorates further—or not.
At 14:00, turnover stood at €148m, with just €2.4m accounted for by block trades; in effect, the supply consisted of “net” selling. A total of 16.7m shares changed hands, including 11.8m in bank stocks.
With all 25 FTSE 25 stocks and 18 of the 20 FTSE Mid Cap stocks in the red, the session has the hallmarks of a mini-sell-off indiscriminately hitting blue chips and mid-caps. Selling is coming mainly from “foreign hands” in bank stocks and large caps, and to a lesser extent from domestic players in mid-caps.
In addition, another stockbroker said that the fact that today is the final session of the week, with a weekend ahead and the possibility of a NAVTEX being issued as part of the implementation of GSI, is adding to the pressure.