Greek stocks ended slightly lower in the Athens Stock Exchange on Friday as the market seemed unable to find any technical support at the end of the week. The composite index of the market fell 0.14 pct to end at 1,086.50 points, off the day’s lows of 1,074.97 points. The index ended the week with a net loss of 5.41 pct and stands 6.55 pct lower so far this year. It was the third successive negative week in the market.
Turnover eased to 81.48 million euros. The Large Cap index rose 0.06 pct and the Mid Cap index ended 1.91 pct lower. Piraeus Bank (3.17 pct), Alpha Bank (1.59 pct), Titan (1.58 pct) and Coca Cola HBC (1.18 pct) were top gainers among blue chip stocks, while MIG (5.36 pct), GEK (2.74 pct), METKA (2.73 pct) and Eurobank Properties (2.50 pct) suffered the heaviest percentage losses of the day.
The Media (3.33 pct), Food (1.16 pct) and Commerce (0.94 pct) sectors scored the biggest gains, while Health (3.90 pct), Financial Services (2.96 pct) and Technology (2.32 pct) suffered losses.
Broadly, decliners led advancers by 72 to 54 with another 14 issues unchanged. Intertek (28.75 pct), Varvaresos (20 pct) and Perseus (18.40 pct) were top gainers, while Boutaris (17.39 pct), Tzirakian (17.11 pct) and Altec (14.81 pct) were top losers.
Sector indices ended as follows:
Financial Service: -2.96%
Real Estate: -1.95%
Personal & Household: -1.96%
Food & Beverages: -1.02%
Raw Materials: +1.16%
Mass Media: +3.33%
Travel & Leisure: -0.88%
The stocks with the highest turnover were OTE, Piraeus Bank, National Bank, and Alpha Bank.
Selected shares from the FTSE/ASE Large Cap index closed in euros as follows:
Alpha Bank: 0.64
Public Power Corp (PPC): 10.10
Coca Cola HBC: 17.22
Hellenic Petroleum (ELPE): 5.32
National Bank of Greece: 2.33
Piraeus Bank: 1.30
Eurobank Properties: 9.35
ADEX closing report
The October contract on the FTSE/ASE Large Cap index was trading at a discount of 0.37 pct in the Athens Derivatives Exchange on Friday.
Volume on the Big Cap index totalled 5,742 contracts with 51,527 open positions in the market. Volume in futures contracts on equities totalled 18,933 contracts with investment interest focusing on Piraeus Bank’s contracts (5,348), followed by Alpha Bank (3,746), National Bank (3,363), MIG (1,391), OTE (1,315), PPC (733), Eurobank (571), GEK (398), Hellenic Exchanges (321), Jumbo (286), Mytilineos (266), Ellaktor (256), OPAP (229) and Athens Water (208).
Greek bond market closing report
The yield spread between the 10-year Greek and German benchmark bonds rose slightly to 5.16 pct in the domestic electronic secondary bond market on Friday, from 5.14 pct the previous day, with the Greek bond yielding 6.13 pct and the German Bund yielding 0.97 pct. Turnover was a low 23 million euros, of which 13 million were buy orders and the remaining 10 million euros were sell orders.
In interbank markets, interest rates were mixed. The 12-month rate eased to 0.341 pct from 0.342 pct, the nine-month rate fell to 0.253 pct from 0.254 pct, the six-month rate was 0.183 pct and the three-month rate unchanged at 0.082 pct. The one-month rate rose to 0.007 pct from 0.006 pct.
Foreign exchange rates
U.S. dollar 1.2732
Pound sterling 0.7807
Danish kroner 7.4432
Swedish kroner 9.2132
Japanese yen 138.93
Swiss franc 1.2071
Norwegian kroner 8.1675
Canadian dollar 1.4148
Australian dollar 1.4483
**** Wages in Greece continued falling in the second quarter of the year, with Greece being one the three EU member-states to record a decline in wages both in the first and the second quarter of 2014.
Wages in Greece (excluding seasonal correction) continue falling for the last four years (by an average 5.05 pct in 2011, 7.4 pct in 2012, 6.55 pct in 2013 and 1.35 pct in the first half of 2014).
The biggest percentage increases in wages were recorded in Estonia (7.7 pct in the first quarter and 7.4 pct in the second quarter), Latvia (7.4 pct and 6.9 pct), Slovakia (3.5 pct and 6.1 pct), Romania (5.3 pct and 5.0 pct) and Hungary (3.1 pct and 4.9 pct). In Germany, wages grew by 1.3 pct in the first quarter and by 1.6 pct in the second.
In Greece, the wages index fell by 1.4 pct in the second quarter of 2014, compared with the corresponding period last year, after a 7.4 pct decline recorded in the 2013-2012 period. Seasonally-adjusted, the wages index fell by 1.0 pct in the second quarter, after a 9.1 pct decline recorded in the second quarter of 2013.
**** Greece’s trade deficit grew by 29.4 pct in July as imports continued rising and exports falling, while the country’s trade deficit rose by 11.3 pct in the January-July period, Hellenic Statistical Authority said on Thursday.
The statistics service, in a report, said that the value of import-arrivals totaled 4.352 billion euros in July, from 3.949 billion in the same month last year, for an increase of 10.2 pct (excluding oil products, the value of imports rose 9.4 pct).
The value of export-deliveries totaled 2.458 billion euros in July, from 2.485 billion in July last year, for a decline of 1.1 pct (excluding oil products the value of exports rose 1.9 pct).
The trade deficit rose 29.4 pct to 1.894 billion euros, from 1.464 billion in July 2013 (excluding oil products the trade deficit rose 19.4 pct).
In the seven-month period from January to July, the value of imports totaled 28.012 billion euros, up 2.2 pct from the same period in 2013 (excluding oil products the value of imports rose 8.9 pct). The value of exports fell 4.0 pct to 15.604 billion euros in the January-July period (excluding oil products exports fell 2.9 pct).
The trade deficit rose 11.3 pct to 12.408 billion euros in the seven-month period (excluding oil products the trade deficit jumped 23.9 pct).
**** Economic recovery without bank credit will be weak, Bank of Greece governor Yannis Stournaras said on Friday.
Addressing a conference in Slovenia, the Greek central banker said that an economic recovery without bank credit would not offer the maximum results as history has shown that in such a case economic recovery was on average weaker than if bank credit was accompanied.
Stournaras stressed that creation of a banking union would restore confidence in the banking sector and noted that the results of a pan-European stress test would play a vital role in improving confidence in the banking sector. A Banking Union will also contribute in reducing a fragmentation of financial markets, he noted.
“The sooner banks restructure their balance sheets, the easier they will regain confidence among private investors, attracting new capital and offer credit to the economy,” the Greek central banker said, while he presented a series of measures aimed to develop Europe’s securitised loan market.
**** Hellenic Financial Stability Fund on Friday said the value of its equity participation in the country’s four systemic banks has fallen to 17 billion euros, from 19.7 billion euros at the end of the first half of 2014 and 22.6 billion euros at the end of 2013.
In its six-month financial report, the Fund said it collected 40 million euros from bank clearings in the first half of the year (38 million euros from Achaiki Cooperative Bank and 2.0 million euros from T-Bank), while the Fund’s capital reserve was 10.938 billion euros.
Anastasia Sakellariou, chief executive of the Fund, commenting on the report said that the first half of 2014 “was a very active and constructive period for the Fund, with the successful completion of a second round of a recapitalisation of the four systemic banks which led to the banks’ further strengthening of their capital bases. Additionally, the Fund, in close cooperation with banks and authorities, finalised and approved banks’ restructuring plans. The Fund will continue supporting banks’ efforts to improve the quality of their assets and safeguard their capital adequacy offering more value to their shareholders”.
**** Bank credit to the private sector remained negative in August, with the annual rate of total credit extended to the domestic private sector standing at -3.5 pct, from -3.7 pct in the previous month, the Bank of Greece said on Thursday.
The central bank, in a monthly report, said that net flow of total credit to the domestic private sector was negative, amounting to 478 million euros (August 2013: negative net flow of 823 million euros).
The net flow of credit to corporations, in August 2014, was negative, amounting to 195 million euros (August 2013: negative net flow of 534 million), and the annual growth rate of credit stood at -4.6 pct, compared with -4.9 pct in the previous month, the central bank said in the report. In particular, the annual growth rate of credit to non-financial corporations stood at -4.4 pct, compared with -4.8 pct in the previous month, while the net flow of credit to non-financial corporations was negative and equal to 123 million euros (August 2013: negative net flow of 453 million). The annual growth rate of credit to insurance corporations and other financial intermediaries stood at -7.4 pct in August 2014, unchanged from the previous month.
The net flow of credit to sole proprietors and unincorporated partnerships was negative, amounting to 21 million in August 2014 (August 2013: negative net flow of 48 million), while its annual growth rate stood at 0.4 pct, compared with 0.2% in the previous month.
**** The National Bank of Greece (NBG) acquired on Friday 5% of the common shares with voting rights of Turkish bank Finansbank AS from International Finance Corporation (IFC), following a put option and an agreement signed with IFC on March 29, 2007.
NBG paid 343,060,832.4 US dollars for the transaction, it said, bringing its stake in Finansbank to 99.81%.