EUROCORP

Financial Morning News 11/06/2014

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 1,322.90 posting profits of 1.36%, in a turnover of €317.05mn.

The IMF said that Greece needs to improve the efficiency of its public sector dramatically to meet fiscal targets and avoid new austerity measures. Without further debt relief or additional bond issues, Greece will face a funding gap of €12.6bn after May 2015. It also projected Greece falling short of its 2015 budget surplus target by about €2bn in 2015 (about 1% of GDP). The IMF expects Greek debt to peak at 174% of GDP this year before declining to 128% in 2020 and 117% in 2022.

Greece sold €1.625bn of six-month treasury bills yesterday, with a yield of 2.15% vs. 2.70% in a previous sale in May. The sale’s bid-cover ratio was 2.70, up from 2.65 in the previous sale (PDMA)

The consumer prices fell 2% in May, with the annual pace of deflation accelerating from a 1.3% fall in prices the previous month (ELSTAT).

The industrial output fell 2.2% y-oy in April, from an increase of 0.4% a year earlier (ELSTAT).

The European Investment Bank said that it would be providing another €200mn for Greek small- and medium-sized enterprises (SMEs) through local banks. The loans, €150mn of which is going to the NBG and €50mn to Alpha Bank, are intended to finance projects in the industry, tourism and services sectors.

Corporate Impacts

    • Forthnet: Wind Hellas, owner of a 33% stake in Forthnet agreed to transfer 13.25% of shares to Vodafone. Vodafone Greece has therefore obtained a call option to acquire €14.58mn Forthnet shares belonging to Wind, which it can exercise by June 4, 2015. No price has been announced for the transaction. The completion of the transfer will not be delayed, taking Vodafone’s stake in Forthnet – the leading triple-play provider in Greece – from 6.5% to 19.75%, on a par with Wind Hellas’s from its current 33%. With their combined stake at just under 40%, they will then try to put pressure on EIT to sell its 44% stake at a normal price.

Technical

FTSE 25 June future:

        Support levels: 420-415-408. Resistance levels: 432-438-445.

General Index:

      Support levels: 1,305-1,285-1,260. Resistance levels: 1,330-1,340-1,355.

Disclaimer

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