The Athens Stock Exchange Weekly Review

By Nicolas Bornozis
Market News
The Greek stock market declined this week, by 2.13% closing at 2117.39 points. The terrorist acts in Turkey as well as the pressure on overseas financial markets negatively influenced the market. The FTSE/ASE 20 Index fell by 2.03% closing at 1066.69 while the FTSE/ASE 40 lost 3.32%, ending the week at 227.07 points. The FTSEASE small cap 80 Index fell this week by 5.07% closing on Friday at 579.43 points.

Economic News
The Greek cabinet approved on Tuesday, November 18th the government’s 2004 budget. The budget is focused on development and the Olympic Games with an overall optimistic look for the Greek Economy. The budget includes a deficit lower than 2003 at 3.8% of GDP, revenues 6.2 % higher estimated at 41.4 billion Euro. Government spending is expected to be 7.7 % higher and the same holds for GDP growth and public debt falling below the 100% level to 98 % of GDP.

The Institute of Tourism Research and Forecasting, stated that the Greek tourism industry inflows for 2002-2003 were 10% lower than last year. Forecasts of the Institute report that 2004, despite the Olympic Games and the expected pick up of world economy, is going to be a difficult year for tourism.

The seasonally adjusted Economic Climate Index continued rising, as in the previous four months, and in October it reached 98.7 from 98.3 in September, according to the report of the Foundation for the Economic and Industrial Research (IOBE). It was a result of the improvements on the indices of manufacturing and retail commerce (manufacturing index increased from 102.9 to 105.3 and retail commerce to 119.6 from 116.7).

In microeconomic news, on November 18th, the Ministry of Finance put on auction 1.1 billion Euro, 4.6% coupon 10-year bond issues. The Ministry will draw 6 billion Euro more than originally budgeted in order to finance the budget deficit. The next auction will be held in December 2003.

The privatization of a 35-40 % equity stake in Hellenic Post Savings Bank could be postponed for first half of 2004, and possibly after Spring parliamentary elections. Agricultural bank is expected to participate in the contest for the acquisition of a strategic equity stake in Post Savings bank.

The ATHEX authorities approved the ADR prospectus for the listing of the first Eastern European Company’s ADRs on the market. It is a FYROM based company, “FHL Mermeren Kombinat”, and it is a subsidiary of Greek small cap company Kyriakides Marbles.

Corporate News
COCA COLA HBC SA
Coca-Cola Hellenic Bottling Company S.A. (Coca-Cola HBC, CCHBC) announced that the Extraordinary General Meeting, which took place on October 31st, approved a share capital reduction of 473,337,192 euros and the return of 2 euros per share to all shareholders. As a result the nominal value of CCHBC shares will be reduced from 2.50 euros to 0.50 euros. The company’s new share capital will therefore be 118,334,298 euro divided into 236,668,596 common bearer shares each with a nominal value of 0.50 euro. The reduction to the share capital and the nominal value has now been approved by the Ministry of Development (decision Κ2-14226/10.11.2003) The Athens Stock Exchange was informed in its board meeting of November 14, 2003 of the share capital decrease and the change in CCHBC’s share nominal value.

HELLENIC FABRICS SA
During the 3rd quarter of 2003 and despite the worldwide negative economic impact, the Group of Hellenic Fabrics S.A. managed to sustain its profitability at satisfactory levels. For the period ending at 09.30.2003, the turnover on a consolidated basis, amounted to 55.16 million euro, while the profits before taxes reached the amount of 3.95 millions euro, noting a decrease of 12.24% and 20.93% respectively compared to fiscal year 2002. Turnover and profits before taxes of the parent company reached the amount of 51.98 millions euro and 3.42 millions euro respectively. As in previous years, the majority of sales reaching 80%, were primarily destined to export markets, mainly to other European Union countries.

BANK OF CYPRUS
The Bank of Cyprus Ltd has successfully closed a 250 million euros senior debt issue on 19 November 2003. The bond, of a three-year term, pays a coupon of 35 basis points above 3M Euribor and has an issue/reoffer price of 99,883%. The bond was issued under the Bank’s EMTN program, which was established in September 2003. The issue was oversubscribed in a short period of time, with the total subscription amount exceeding 425 million euros. The bond investor base is well-diversified. Investors came mainly from: United Kingdom 43%, Austria 20%, Germany 11%, Ireland 5%, France 4%, Greece 2%, Portugal 2%, Spain 2%, Estonia 1% and Belgium/ Netherlands/ Luxembourg 5%. Approximately 77% of the issue was placed with banks, 15% with investment funds and 8% with insurance companies.

MOTOR OIL SA
The satisfactory development of Motor Oil (Hellas) figures during the 9 months of 2003, allowed the company to sustain its steady course of high profitability. Earnings Before Taxes amounted to 79.2 million euro for 2003 compared to 74.9 million euro for the respective nine-month period of 2002. Earnings Before Depreciation, Interest and Taxes (EBITDA) for the period amounted to 100.8 million euro compared to 97.5 million euro for the respective nine- month period of 2002. Turnover for the first nine-months of 2003 amounted to 1,150.9 million euro compared to 1,002.6 million euro for the respective period of 2002. Sales volume amounted to 4,928 thousand Metric Tonnes increased by 11% compared to the respective figure of 2002. The Company’s inventories remained at low levels.