The General Index of the Greek Stock Exchange was coming from three consecutive declining sessions, with cumulative losses of 1.98% and the sectoral index of banks from an equal number of corrective sessions, with cumulative losses of 4.75% and there were quite a few analysts who, after the close of yesterday's session, were expecting a reaction, even of a technical nature.
The international stock market climate changed the data and the ASE was forced to follow the "southern" movement of international markets, albeit at a milder pace.
More specifically, investors' concerns started last night from Wall Street and from the "usual suspect" technology sector, as worries returned about the huge spending of "hyperscalers" on artificial intelligence and who ultimately bears the cost. Fears outweighed the positive signs for demand given by the forecasts of Micron and Qualcomm, with the technology index Nasdaq completing four consecutive declining sessions, for the first time since February. Apple and Microsoft shares also came under significant pressure, due to the price increases they made to their products.
Contrary movement also last night, from the small-cap index, Russell 2000, which finished trading at new all-time highs. The EuroStoxx 600 index also finished yesterday's trading at new all-time highs.
The pressures extended this morning to Asia, where the -5.81% of Korea's Kospi and the -4.09% of Japan's Nikkei stood out, and later to Europe, with clearly milder losses.
In this climate, today's session at the Greek Stock Exchange took place, with the main indices of the ASE moving mainly in the "red", while the end of trading found turnover at relatively low levels (the lowest of the last four sessions) and the General Index and the Bank Index having completed four consecutive declining sessions, with cumulative losses of 2.07% and 5.25%, respectively.
Most analysts declare themselves clearly concerned, noting that "this barrage announced by listed companies in share capital increases and bond issues and the ongoing liquidity raising, is starting to resemble an 'overdose' situation and when things get out of hand, usually, at the 'end of the road' there lurk significant negative surprises."
According to an old market player, "after the announcements for share capital increases, 650 million and a bond issue of 300 million by AKTR (+0.15% and new 273-month highs), for which the column had given timely notice, a large listed company is next in line, which with the same 'story' (energy infrastructure) will consider the possibility of raising capital. In case of approval, the share capital increase is scheduled for September and certainly after 'the people's summer holidays', with whatever that may imply for what follows.
Beyond that, the rather weak picture of the index-heavy bank stocks continued today, while, as the column has mentioned, analysts' opinions remain absolutely divided.
According to the cautiously optimistic, "it is considered a matter of time before buyers return to bank stocks, as 'buyers' will rush to discount the satisfactory first half results that are expected."
The column collected the announced financial calendars of the heavyweight banks and unless there are some last-minute changes, on 29/7 Piraeus announces first half results, on 30/7 NBG, Eurobank and Optima, on 31/7 Alpha, on 3/8 BOCHGR and on 6/8 CREDIA.
On the other hand, there is also the more "suspicious" school of thought, according to which "until the elections and perhaps until the Thessaloniki International Fair, it is not excluded that the market will 'see' the banks announcing additional grants, as well as some other measures in favor of borrowers - depositors. The older foreign managers active in the ASE have long experience of what happens in the country and during pre-election cycles and 'take their precautions'.
Beyond that, the "rotation" in large capitalization, outside the banking sector, continued today, yet another indication that valuations, with very few exceptions, are "demanding" and there are no "blatantly cheap" stocks that would attract the attention of traders.
With no intention of changing the bad picture, the overwhelming majority of mid and small cap stocks remain on the sidelines of trading and interest.
Meanwhile, according to the status of the Hellenic Capital Market Commission, regarding negative net positions exceeding 0.5%:
Arrowstreet Capital Limited Partnership remains with a net negative position of 0.50525% in QLCO stock, JP Morgan Asset Management (UK) Ltd with a net negative position of 0.80012% in MTLN stock, AKO Capital LLP with a net negative position of 1.31857% in MTLN stock, Marshall Wace LLP, with a net negative position of 0.71013% in MTLN stock and Qube Research & Technologies Limited, with a net negative position of 0.61894% in BYLOT stock.
Qube Research & Technologies Limited, as of 25/6, increased its net negative position in ADMIE from 0.45965% to 0.51337%.
Main European markets are in negative territory, with most traders having chosen to wait, expecting both today's Wall Street close and news from the Middle East.
Bond yields are moving steadily in the bond market, for all issuers. The yield on the US 2-year bond is at 4.10%, the 10-year at 4.39%, (the 30-year yield at 4.88%). The yield on the Greek 10-year bond is at 3.536%.
The General Index moved between 2438.97 (-0.52%) and 2454.01 points (+0.10%). At 17:00 it was at 2449.65 (-0.08%) and finished trading at 2449.29 points, with daily losses of 0.10%.
Turnover at 258.4 million, of which 35.7 million concern pre-agreed transactions (MTLN, BYLOT, AKTR, REALCONS, CENER, ELHA, MOH, EYDAP, EUROB, NBG, BELA, ADMIE, PPC, KRI, GEKTERNA, OTE), with NBG, EUROB, ADMIE and PPC accounting for 42% of the total gross transaction value.
Of the total turnover of 258.4 million, 212.2 million concern transactions in FTSE 25 shares.
Beyond that, today was the last session of the week, which interrupted the upward streak of the previous two weeks, charging the General Index with weekly losses of 1.08% and the sectoral index of banks with losses of 4%. Since the beginning of the year, the General Index has recorded gains of 15.49% and the Bank Index gains of 19.2%.