By Nicolas Bornozis
The Greek stocks market remained almost unchanged this week, with the ASE decreasing slightly by 0.23% closing at 1901.48, outperforming international bourses, with the telecom sector and PPC partly outstripping the pressure on banks. Daily average turnover value was formed at €146.94, with institutional investors remaining the main players. The FTSE/ASE 20 Index closed lower 0.20% than last week, at 949.94. The FTSE/ASE 40 Index rose 0.57% closing at 204.80. The FTSE/ASE 80 Index lost 3.75%, closing at 521.86. In parallel, the major foreign bourses consolidated or reached slightly lower levels on the back of technically oriented investors that booked profits and the release of discouraging macroeconomic and corporate data. Furthermore, there was an additional depreciation of the Euro/$ parity (1.14 levels), following the expectations for a stronger growth of the US economy.
In economic news this week, the Ministry of Economy reported that FY03 GDP rate is expected to reach 3.9%-4% vs. initial estimations of 3.8%. In other macroeconomic news, the current account deficit during January to April widened Euro 609m to Euro 4.33bn. In April 2003, the current account balance remained almost unchanged year-on-year, recording a 1,062 million Euro deficit. This resulted from a narrowing of the non-oil trade deficit and the income account deficit, as well as from a widening of the services surplus. These developments were offset by an increase in net oil imports and, most notably, a decrease in the transfers surplus. Furthermore, in April 2003 direct investment showed a net outflow of 65 million Euro. Under portfolio investment, a net inflow of 1,973 million Euro was recorded, mainly reflecting non-residents’ investment in Greek bonds, which was only partly offset by an outflow for purchases of foreign bonds by residents. Finally, as regards “other investment”, a net outflow of 1,179 million Euro was observed, connected mainly to a decrease in deposits and repo holdings abroad by residents, as well as to reduced deposits and repo holdings of non-residents.At the beginning of June the Greek 10-year bond coupon was standing at its lowest level ever, at 3.62%. The level of inflation rate in June is expected to remain unchanged compared to May (3.8%).
Greece’s sovereign bond market has performed exceptionally well since Greece’s entrance in the Eurozone in January 2001. The Greek Government’s bonds’ spread with the German bund stands at 18 basis points. In February the spread was standing at 28bps and in January 2001 at 60 basis points. At the beginning of June the Greek 10-year bond coupon was standing at its lowest level ever, at 3.62%.
Alpha Bank S.A.
Alpha Bank successfully completed the first solely arrangement of a syndicated long term facility by a Greek Bank for the amount of USD 50,000,000 on behalf of the Ministry of Public Works Transport and Housing of Romania. The facility was signed on June 13, 2003 in Bucharest and is fully guaranteed by the State of Romania. The purpose of the financing is the implementation of the program of rehabilitation of the defective communal roads, the scope is to fight the continuing depopulation of villages, and is regarded as one of the country’s major projects before entering the European Union.
Delta Singular S.A.
Scan Group, member of Delta Singular Group, was awarded the project for the automation of four central parking stations of 600 spaces each that are constructed by the Joint Venture Company of Athens Car Stations. The objective of the cooperation between Scan Group and the Joint Venture Company of Athens Car Stations is the construction of modern parking that will operate unattended equipped with automated payment stations. Within the context of this cooperation, Scan Group will provide the necessary software and the pertinent equipment of the German company Scheidt & Bachmann for which has the exclusive distribution rights. Scheidt & Bachmann is the largest company in the parking stations automation systems in Europe., Scan Group will provide continuous support – 24 hours a day, 365 days a year.
Radio Korasidis S.A.
The shareholders of Radio Korasidis S.A. decided on the share capital increase through a rights issue at a ratio of 4 new shares for every 5 old held at 1.30 Euro each.
The share capital of the company will reach the amount of 4,956,627.51 Euro after the issue of 15,989,121 new common registered shares with a nominal value of 0.31 Euro per share and a issue price of 1.30 Euro per shares. The total number of new shares (15,989,121) will be distributed preferably to the old shareholders at a ratio of 4 new shares for every 5 old shares held. The raised capital amounting to 20,785,857.30 Euro will be allocated in the reduction of short-term liabilities.
A new contract has been awarded to Yugolot – member of the Intralot Group – from the state lottery organization of Serbia “Narodna Lutrija” for the operation of fixed odds betting via telephony. The new agreement includes the installation of an integrated lottery phone betting system, the development of the hardware and software and the promotion and advertising of the betting via new media. The agreement is for 10 years and has a renewal option. Yugolot will undertake the implementation of the technological infrastructure and Betting Company will provide the related services for the operation of the game. The remuneration of Yugolot is based on a percentage of games’ turnover.
Hellenic Telecommunications Organization SA (OTE), announced the appointment of Mr. Panagiotis Tambourlos as Chief Financial Officer of its fixed-line operations. Last April, OTE stated its intention to hire a fixed-line CFO within the framework of the new business structure currently being implemented. Since his appointment last April as OTE Group CFO, Iordanis Aivazis temporarily assumed the functions of Fixed-Line CFO in addition to the management of OTE finances at the Group level, on which he will now be able to concentrate.