Financial Morning News 21/6/2012


The General Index in Athens Stock Exchange (ASE) closed at 603.04 posting profits of 0.49%, as the conservative New Democracy leader Mr. Antonis Samaras sworn in as Prime Minister, after the agreement was reached for a coalition government with Pasok and Democratic Left, in a turnover of €83.15mn. Nevertheless, the banking index lost 10.09%, as it became “a case of buy the rumor and sell the fact”.

A spokesman for the German government said that the German Chancellor Angela Merkel will wait until the troika of Greek creditors returns from its upcoming mission to the indebted nation and presents its findings before making any further decisions.

The Bundesbank President Mr. Jens Weidmann said that Greece must bring its reform program back on track if an assessment by the troika comes to the conclusion that it has fallen off the rails was quoted.

Corporate Impacts

  • Intralot: It concluded a forward start facility agreement for €300mn. The new Facility, which exceeded the initial target of €250mn, will mature in December 2014.
  • Cypriot Banks: An EU diplomat said that Cyprus will ask Russia for a loan of between €3bn and €5bn before the weekend and will then request aid from its euro-zone partners for its ailing banks.
  • Hellenic Petroleum: DEPA has secured €100mn in bank loans to pay for deliveries until the end of August.
  • Alpha Bank: The bank denied press reports that it was in talks to acquire parts of Emporiki Bank, majority owned by France΄s Credit Agricole.
  • Technical

    FTSE 20 September future:

      Support levels: 218-212-202. Resistance levels: 236-242-250.

Financial Morning News 20/6/2012


The General Index in Athens Stock Exchange (ASE) closed at 600.07 posting profits of 3.34%, in a turnover of €71.36mn.

After his meeting with PASOK leader Mr. Venizelos, the Democratic Left president Mr. Kouvelis reiterated his conditions in order to participate in a coalition government with New Democracy and PASOK. We remain that the three political leaded will go to the president of the Republic to formalize the agreement to form a government of national salvation.

The European Commission said that it wants to work with a new Greek government to push through reforms and revive the economy but that there would be no new agreement with Greece on the terms of its €130bn rescue package.

S&P’s said that the victory of the pro-bailout parties in the Greek elections at the weekend has cut the risk of the country’s disorderly exit from the euro zone in the near term. However, he warned that both Greece and the creditors will need to do further work to ensure that it can stay in the euro zone in the long term.

The US Treasury Department’s chief international official Ms. Lael Brainard said that we need to give some more time for Greece’s international financial rescue to work.

Greece sold €1.3bn of three-month T-bills, with the yield of 4.31%, down from 4.34% in the previous auction. The sale’s bid-cover ratio was 2.19 vs. 2.32.

Corporate Impacts

  • Cypriot Banks: The Finance Minister Mr. Vassos Shiarly said that they are optimistic they will get the financing they need to recapitalize the banks, whether that will be through a bilateral agreement, or through the EFSF.
  • Greek Banks: Several Greek bankers said that deposits are trickling back to Greek banks after the election outcome, as panicked Greeks who had withdrawn up to €800mn from major banks daily in the run-up to Sunday΄s vote on fears a leftist victory would push the country back to the drachma were now bringing back some of the money stashed at home (Reuters).
  • Technical

    FTSE 20 September future:

      Support levels: 222-216-208. Resistance levels: 238-246-252.

Financial Morning News 19/6/2012


The General Index in Athens Stock Exchange (ASE) closed at 580.67 posting profits of 3.64%, due to the election outcome, in a turnover of €102.01mn. The stock market will now focus on the formation of a new government and its policy priorities.

The New Democracy leader Mr. Antonis Samaras received the mandate from the President Karolos Papoulias to form a government and he will have three days to do so. He first met with SYRIZA chief Mr. Alexis Tsipras, who turned down joining a coalition, saying that his party must be in opposition as they represent opposite camps. Then he met PASOK head Mr, Evangelos Venizelos who stated that the most crucial thing right now is to achieve the greatest possible range of consensus and this must happen by today night at the latest.

A government spokesman said that Germany is awaiting the troika’s report on Greece’s reform progress before it will take any action regarding pending bailout payments to Greece.

The German Deputy Finance Minister Mr. Steffen Kampeter said Athens should not be pushed too hard on its reforms, signaling there may be scope for some easing of the pressure.

The IMF chief Christine Lagarde stated that we can perform a new revision to Greece’s program, which could start as soon as a new government is formed in Athens.

Broker Meteorology

  • Goldman Sachs said that the election results may temporarily alleviate market sentiment, but this does not change the rules of the game, as Greece still faces unresolved issues.
  • Corporate Impacts

    • Banks: Greek deposit withdrawals slowed yesterday after the election victory by New Democracy party eased concern the nation will abandon the euro.
    • Technical

      FTSE 20 September future:

        Support levels: 216-208-202. Resistance levels: 232-240-246.

Financial Morning News 18/06/2012


The General Index in Athens Stock Exchange (ASE) closed at 560.26 posting profits of 1.85%, in a turnover of €97.04mn.

The conservative New Democracy finished first with 29.66% of the vote, followed by the left-wing Syriza party with just over 26.89%. The Socialists (PASOK) came third with 12.28%. The right-wing Independent Greeks won 7.51%, the Golden Dawn won 6.92%, Democratic Left won 6.26% and the Communist Party won 4.50%. Since none of the parties won an outright majority, the Greek President Mr. Karolos Papoulias will now call on the leader of the first party to form a coalition government.

The leftist leader of SYRIZA Mr. Alexis Tsipras rejected to participate in a coalition government and he insisted that his party should remain in opposition. The leader of PASOK Mr. Evangelos Venizelos spoke of his preference for a government of “shared responsibility” and he suggested that he would like SYRIZA to join a unity administration as well. Democratic The Democratic Left leader Mr. Fotis Kouvelis interpreted Sunday’s result as one that calls for the formation of a coalition government.

EU leaders urged Greek parties yesterday to quickly agree the formation of a coalition government and pledged to continue to support Athens’ efforts to deal with its debt crisis.

The Belgium Deputy Prime Minister Didier Reynders said that Greece will face a worse situation if it exits the euro zone.

Corporate Impacts

  • Piraeus Bank: It signed a deal to sell its New York subsidiary, Marathon Bank to Investors Bancorp for $133mn in cash. The sale will boost its total capital adequacy ratio by about 22 basis points to 9.3%.
  • CCH: Moody’s downgraded to Baa1 from A3, while the outlook on the rating remains negative, as the current macroeconomic and consumer outlook across Europe will remain depressed in the coming quarters.
  • Technical

    FTSE 20 June future:

      Support levels: 204-196-190. Resistance levels: 220-232-240.

Financial Morning News 15/06/2012


The General Index in Athens Stock Exchange (ASE), ahead of parliamentary elections over the weekend, closed at 550.10 posting significant profits of 10.12%, (the biggest percentage increase in the last 10 months from August 2011) in a turnover of €81.50mn.

Greece’s jobless rate rose to a record 22.6% in the Q1’12 from 20.7% in the Q4’11 and 15.9% in the Q1’11 (ELSTAT).

IIF said that Greece’s emergency bailout program targets should be eased in light of the country’s severe economic crisis and may need more external financial help.

Eurozone officials said that eurozone will not tear up the main targets of Greece’s bailout no matter who wins Sunday’s elections, but it might consider giving a new government in Athens some leeway on how it reaches them (Reuters).

The Slovak Prime Minister, Mr. Robert Fico supports Greece remaining in the euro zone, only if the country honors its commitments, otherwise it should quit.

Corporate Impacts

  • Cyprus Banks: The advisor to Central Bank of Russia, Mr. Pavel Medvedev said that Russia is prepared to offer Cyprus a new credit of €5bn.
  • Technical

    FTSE 20 June future:

      Support levels: 198-192-186. Resistance levels: 212-220-228.


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