EUROCORP

Financial Morning News 30/08/2013

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 893.77 posting profits of 1.45%, in a low turnover of €31.87mn.

According to a Document by the German Finance Ministry, signed by Deputy Finance Minister Mr. Steffen Kampeter, Greece still needs €77.7bn additional financing needs (Bild).

Corporate Impacts

  • PPC: The company posted pretax profits for H1’12 of €170.2mn from €52.5mn, despite the increase of CO2 expense by approximately €106mn, the reduction of the energy mix cost by €146mn (-8.1%), attributed to a large extent to hydro generation which more than doubled. The total revenues amounted to €2.95bn, from €2.94bn. The management sees for 2013 revenues from energy sales of €5.9bln, total Revenues of €6.1bln and EBITDA margin of 16.5%-17%.
  • NBG: The bank reported a profit of €344mn in H1’12 (est: €125mn), helped by its Turkish subsidiary Finansbank (net profits of €332mn) lower funding costs and provisions for bad debt. The loan-loss provisions fell to €853mn vs. €1.2bn last year.
  • OPAP: The group announced a 73.9% drop in net profits for the H1’13, to €67.3mn. The sales fell 15.1% to €1.744bn, mostly because of the severe economic downturn and one-off factors that hit first-quarter results. The EBITDA decreased by 70% to €103.3mn.
  • Hellenic Petroleum: The group announced Q2’13 adjusted EBITDA at €21mn vs. €197mn in Q2’12, driven by historically low hydro-cracking margins and challenging industry conditions, especially in the Med. ELPE reduced its net debt to €1.8bn and doubled its exports, as Elefsina overcomes start-up and initial optimisation issues to reach 95% utilisation in 2Q13. The net income affected by reporting of higher depreciation and finance costs due to Elefsina start–up.

    • Technical

    FTSE 25 September future:

      Support levels: 300-292-286. Resistance levels: 312-318-324.

    General Index:

      Support levels: 870-861-850. Resistance levels: 915-940-960.

Financial Morning News 29/08/2013

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 881.03 posting marginal losses of 0.04%, in a low turnover of €30.84mn.

The EU Economic and Monetary Affairs Commissioner Mr. Olli Rehn said that it is too early to judge how much extra money Greece will need to plug an emerging hole in its rescue program. He added that troika will do its job and make the analysis of the potential financing gap in autumn.

The Austrian Finance Minister Ms. Maria Fekter said that Greece must meet terms of its existing international bailout before it can hope for any more external aid.

Corporate Impacts

  • OPAP, Intralot: The 12-year concession agreement for the State lotteries was submitted to Parliament and it is expected to be approved today. The OPAP-led consortium will deposit the €190mn upfront payment, while the government’s benefit is estimated to €524mn.
  • Piraeus Bank: It reported a net profit of €3.509bn, including a one-off gain of €3.81bn from the Cypriot takeover. Provisions for impaired loans reached €1.054bn, with its NPLs rising to 33% from 31%. Net interest income reached €734mn, helped by lower funding costs after reduced recourse to the Greek central bank’s costly emergency liquidity facility (ELA) and a drop in deposit rates.
  • Greek Banks: Deposits of businesses and households fell 0.2% from the previous month to €162.39bn from €162.67bn in June (BoG).
  • Cypriot Banks: Private-sector deposits fell by 2.4% to €36.7bn after a 7.6% fall in June (ECB data).

    • Technical

    FTSE 25 September future:

      Support levels: 298-290-284. Resistance levels: 310-316-322.

    General Index:

      Support levels: 861-850-830. Resistance levels: 910-940-960.

Financial Morning News 27/08/2013

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 918.82 posting losses of 0.61%, in a low turnover of €18.04mn.

The Finance Minister Mr. Yannis Stournaras said that Greece could return to debt markets in the second half of 2014 if the country returns to growth in the first half of next year and manages a primary surplus. He added that Greece did not need a second debt haircut because it could reduce its debt burden by other means such as easier terms on its current international rescue packages.

The Bundesbank chief Mr. Jens Weidmann repeated his opposition to a debt write-down for Greece, as it would be counterproductive and send the wrong signal to countries receiving aid.

The ECB Executive Board member Mr. Joerg Asmussen said that Greece can achieve a primary budget surplus this year and growth in 2014 if it sticks to economic reforms, but a return to bond markets will be challenging.

Corporate Impacts

  • METKA: The company has been commissioned by Germany’s Krauss Maffei Wegmann (KMW) to construct the armored hulls and towers for 62 Leopard 2 tanks. The deal is worth €56.5mn and is expected to be signed soon.
  • Fourlis: Q2’13 results.

    • Technical

    FTSE 25 September future:

      Support levels: 310-304-300. Resistance levels: 322-328-334.

    General Index:

      Support levels: 910-884-861. Resistance levels: 940-960-980.

Financial Morning News 26/08/2013

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 924.47 posting significant profits of 2.94%, in a turnover of €36.61mn.

The German Finance Minister Mr. Wolfgang Schaeuble said that he expects a future aid package for Greece to be much smaller than the existing rescue deals. At the same time, the Dutch Finance Minister Mr. Jeroen Dijsselbloem agreed with Mr. Schaeuble that Greece will likely need a new bailout next year.

The Finance Minister Mr. Yannis Stournaras said that if there is need for further support to Greece, it will be in the order of about €10bn, or much smaller than the previous programs.

The German Chancellor Ms. Angela Merkel warned a Greek debt write-down could spark a “domino effect of uncertainty” and scare off investors in the eurozone.

The IMF admitted in a new working paper that it overestimated the impact of austerity in Greece and the prospects for growth in the recession-hit country.

Corporate Impacts

  • Eurobank: EGM

    • Technical

    FTSE 25 September future:

      Support levels: 312-306-300. Resistance levels: 325-330-336.

    General Index:

      Support levels: 910-884-861. Resistance levels: 940-960-980.

Financial Morning News 23/08/2013

GREEK FINANCIAL MARKET

The General Index in Athens Stock Exchange (ASE) closed at 898.08 posting losses of 0.63%, in a turnover of €26.88mn.

The Prime Minister Mr. Antonis Samaras, after his meeting with the PASOK leader Mr. Evangelos Venizelos said that there will be no foreclosures on homes belonging to underprivileged social groups and he added that the government is studying a framework of reforms that will secure the vulnerable but will also prohibit abusive behaviour and seek to protect mortgage credit.

The President of the Eurogroup Mr. Jeroen Dijsselbloem said that Greece will need more financial assistance in 2014 and the form and size of any assistance will depend on Greece’s adherence to economic reforms.

The revenues from tourism in Greece reached €3.3bn (+17.8%) in the first half of this year. Please note that Greece is hoping that a record year for tourism, with some 17mn visitors expected.

Corporate Impacts

  • Companies for Privatization: The Greek Prime Minister Mr. Antonis Samaras met with the Saudi billionaire Prince Alwaleed bin Talal yesterdeay. They discused investment opportunities, as Greece is looking to attract investors into its asset sales program, which includes its gas company DEPA, utility PPC, the Athens international airport, refiner Hellenic Petroleum and its two main ports to help chop its debt load.

    • Technical

    FTSE 25 September future:

      Support levels: 302-298-290. Resistance levels: 314-320-326.

    General Index:

      Support levels: 884-861-850. Resistance levels: 915-940-960.

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