Announcement of midterm plan to set the course of stocks
The positive outcome of the government’s negotiations with its international creditors saw Greek stocks end the week with much-needed gains, although the main index has not managed three consecutive rising sessions since mid-March.
The Athens Exchange (ATHEX) general index ended on Friday at 1,333.66 points, adding 5.43 percent to the previous week’s close, mostly thanks to the 56-point rise (up by 4.42 percent) registered on Friday.
Observers agree that the performance of bank stocks will be key in deciding which direction the market takes in the new week, with most eyes on National Bank, which has been showing signs of a rebound after its capitalization climbed back above the 5-billion-euro mark. This was fueled on Friday by rumors of a possible merger proposal to Hellenic Postbank.
On Friday alone the sectoral index of banks gained 8.8 percent, pointing to the fact that whatever happens on the fiscal front has a direct impact on banking stocks.
The market is now awaiting the official announcement of and then the vote on the midterm fiscal plan to assess the prospects for privatizations and the possibility of mergers. This is expected to trigger more bourse activity, building on the comparative rise in turnover seen last week.
Marfin Investment Group had the biggest weekly gains (up 34.62 percent), while Intralot was the the worst off among the losers (down 26.07 percent).