The Greek stocks market increased this week, with the ASE gaining 1.81% closing at 1910.60. Daily average turnover value was formed at € 235.90. The FTSE/ASE 20 Index closed higher 2.05% than last week, at 961.32. The FTSE/ASE 40 Index also rose 4.14% closing at 204.55, while the FTSE/ASE 80 Index gained 3.37%, closing at 543.21.
The numerous scenarios regarding M&A activity in the banking sector were the main focus of the Greek market this week, which along with BoG’s decision to lift the constraints regarding consumer loans fuelled the sector’s constituents share performance and aided the index to reach higher levels. On a sectoral level, Media and Pharmaceuticals outperformed the General Index by 19.5% and 6.6% respectively while, on the other hand, Software recorded the biggest losses of 6.2% followed by Food Stocks, which declined by 3.6%.
Greek government bonds, trading on the electronic secondary securities market (HDAT), posted remarkable gains and reduced the yield gap with respect to the German equivalent bonds. Price gains were in the range of 113 – 589 cents. The 20-year bond (22.10.2022) recorded the highest gains closing at 117.13 (with a yield of 4.55%) at the end of May from 111.24 (yielding 4.98%) at the end of April. The 10-year benchmark bond (20.5.2013) closed at 106.28 (yield 3.82%) up from 102.27 (4.31%) respectively. The 10-year average yield spread over Bunds narrowed to 18 basis points (bps) in May from 20 bps in April.
In economic news this week, the National Statistics Service reported that the industrial production index declined 1.8% for the period January-April 2003, while in April the index recorded a sharper decline of 2.8% y-o-y. The sharpest decline was recorded in the transport industry (61.5%) and the telecommunications industry (41.8%). The National Statistics Service also reported that Greek 1Q03 GDP grew 4.3% y-o-y and 2.9% q-o-q and that the building construction activity increased 20% in January-February 2003, boosted by the high growth of mortgages for the 2-month period (+34,8% on January, +34.4% on February y-o-y).
May CPI surged to 3.8% from 3.4% in April 2003. The market expectations pointed to a rise to 3.7%. The rise is attributed mainly to Food & non-Alcoholic Beverages while communications had a beneficiary effect to inflation. Core inflation fell to 3.1% in May from 3.5% in April – the lowest in the last 30 months. May retail sales grew 10.6% from a 7.9% rise in April. 1) Supermarkets and 2) Furniture & appliances led the growth in retail sales.
European Central Bank, EFG Eurobank
Following the lowering of interest rates by the European Central Bank, EFG Eurobank Ergasias adjusted its interest rates accordingly. The new interest rates will go into effect on Monday, June 16, 2003. Examples of these adjustments are: Deposit rates on savings accounts are reduced by 0.10 % across all ranges, and the interest rates of the New Savings accounts are reduced by up to 0.50%.
Alpha Bank came to agreement with Elliniki Technodomiki-Τ.Ε.Β. Α.Ε. for the transfer of the Bank’s total holding of 12.82% in the Company Urban Developments S.A.
Babis Vovos- International Construction S.A.
Babis Vovos- International Construction S.A. signed a preliminary agreement notarial contract for the sale of a supermarket, department store and other activities building complex with “Carrefour – Marinopoulos”. The agreed price amounts to 65 million Euro. The building complex will be constructed at the region of “Delta” P.Falirou and will cover an area of 50,000.00 m2.
OPAP S.A. announced that as a result of negotiations with the federation of syndicates of its agents, it has decided that Kino will be played throughout its existing agency network and as a result it has revised its plan for the rollout of Kino in Greece and Cyprus.
Under the revised plan, a four-month pilot program, with three phases, will commence in early July 2003. During the third and final phase, OPAP is expected to be able to offer its paying customers Kino for the first time. In other company news, charges have been pressed against six current members and one former member of OPAP’s board of directors for breach of fiduciary duties (as misdemeanor), regarding a decision they adopted acting in such capacity in relation to the assignment of certain advertising services to an advertising company.
Hellenic Duty Free
Hellenic Duty Free’s 40% equity stake was transferred from Agricultural Bank to Germanos and Folli Follie at €8.40 per share. Following this move Germanos commands 23.99% and Folli Follie holds 24.68% in HDF.
FYROM-based mobile telephone company, Cosmofon, has launched operations this week. The only competition in the FYROM mobile telephony market is MobiMak, subsidiary of the local dominant fixed telephony company
Ipirotiki Software & Publications
Ipirotiki Software & Publications’ IPO subscription period will take place between June 17 and June 19, 2003. IPO price range is set at €5.30-€ 5.82. The company plans to issue 1,460,950 new shares increasing the total share number to 6,960,950.