EUROCORP

Financial Morning News 29/11/2012

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 822.72, posting losses of 2.87%, in a turnover of €62.32mn.

The finance minister Mr. Yannis Stournaras said that the international creditors have prepared a back up plan to tackle the crippling debt burden if a program to buyback and retire that debt fails to live up to expectations. The exact size of the loan has not been decided and would depend on the participation in the plan.

A senior finance ministry official told Reuters that Greece has hired Deutsche Bank and Morgan Stanley to conduct a voluntary buy back of its debt. He added that the average bond buyback price could between 28c – 30c, but it could be changed.

The Eurozone central banks may decide to roll over their holdings of Greek debt to reduce by €5.6bn the amount governments will need to provide Athens by 2016. Such a move would cut the amount to €2bn from €7.6bn (Reuters).

The Social Democrat party’s chief parliamentary whip Mr. Thomas Oppermann said that it is undecided on whether it will support new aid measures to help Greece when parliament votes on the matter. The German Parliamentary vote is scheduled for tomorrow.

According to the Financial Times, the Eurozone governments could be forced to accept losses on their rescue loans to Greece after Monday’s late-night deal to overhaul its bailout failed to agree how to reach new debt targets for the struggling country.

Corporate Impacts

  • Greek Banks:The total deposits held by domestic residents and companies rose to €155.2bn in October from €154.3bn in September and €153.4bn in August. The net lending to Greek businesses and households in October shrank 4.8% on the year (BoG). In other news, Fitch said that the Greece’s agreement with the Eurogroup for the next aid disbursement, including €23.8bn of new capital for its banks should strengthen confidence in the fragile Greek banking sector, but questions remain about how the recapitalisation will be implemented.
  • OPAP:The Board of Directors of the Hellenic Republic Asset Development Fund announced that following the evaluation of the eight Expressions of Interest submitted for the sale of a 33% stake of OPAP, seven entities and consortia fulfil all criteria and will participate in the next stage of the tendering process: BC Partners, Emma Delta Ltd, Consortium of Gauselmann AG (55%), Playtech Ltd (41%) and Helvason Ltd (4%), Consortium of Intralot Holdings Luxemburg S.A. (34%) and Intralot Investments Ltd (66%), Primrose Treasure Limited subsidiary of Fosun international, Third Point LLC and TPG Capital.
  • BoC:It posted a nine-month loss after tax of €211mn after including impairment in the value of Greek bonds held and on higher provisions for non-performing loans. Its capital shortfall to reach a core tier 1 ratio of 9% is €722mn. A protracted downturn in its two main markets, Cyprus and Greece, resulted in a significant deterioration of the bank’s loan portfolio, with the bank increasing provisions by 179% to €822mn compared to €295mn. Its NPL ratio rose to 17.1% at the end of September compared to 14.2% at the end of June.
  • Technical

    FTSE 20 December future:

      Support levels: 286-278-270. Resistance levels: 300-308-316.

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