ATHEX – Pre-conference comment

The market this week started with a drop from 903.33 followed by a series of sessions that brought the average back to 900 points. However, this was done with a special course of yesterday with two peaks at approximately the same levels – The first came at 11:08 and the second at 17:10 roughly at the beginning and at the end of the meeting. However, a sideways movement of average prices defines a state of equilibrium between supply and demand. Yesterday, the sideways movement between 896.30 points and 897.60 lasted from 12:15 to 16:30, the traders considered it in their interest, some to liquidate and some not to be placed at these price levels. The unhappiness from yesterday’s trading resulted from the refusal of market forces to celebrate, as was done in the other euro stock markets, the announcement of US inflation data. These showed that in terms of structural inflation the pressures were lower than expected.

Investors were thrilled that the Fed’s calculations, which showed a temporary rise in inflationary pressures, were justified and allow it not to rush into reducing its monthly asset purchases. So while outside Greece the indicators were shaken at 15:30 after the data and marked new highs of the day in the second part of the sessions and everyone had a happy ending.

In Athens, at 16:08 the market scratched the bottom of the day at 896.3 and “shook” in half an hour to 898.1 having registered a high of 900.44. Of course, the strong institutions have probably loved the patent of intervening in the formation of valuations through auctions to set closing prices. Yesterday, DG gained about two points while it had a day fluctuation of 4.14 and prices reappeared up to 900.38 points to bring the closing to 900.10.

Persistence

The persistence in the movements based on the technical picture of the market and the individual shares is justified by the data presented by HELEX through the AXIA Numbers Bulletin for July. Foreign Shareholder Beneficiaries made inflows of € 46.3 million in July, completing the third consecutive month of inflows, in contrast to Domestic Beneficiaries of Outflows which registered outflows of € 46.3 million in July.

The distribution of the Portfolio Value of the Beneficiary Shares was 62.7% for the Foreign Beneficiary Shares and 37.3% for the Local beneficiaries. The countries with the largest portfolio value (customer shares) for July were the USA with a total portfolio value of € 5.9 billion, Cyprus with a portfolio value of € 5.1 billion and the Netherlands with a portfolio value of € 4.1 billion. Foreign Beneficiaries made 61.6% of total transactions (purchases & sales) in July 2021 (compared to 55.8% in the previous month), while Domestic Beneficiaries made 38.4% of the transactions, compared to 44.2% in the previous month.

Artificial interest

Despite the efforts of some factors to create artificial interest, regarding the expected revision of the MSCI index late last night, with Piraeus Bank being introduced to the MSCI Small Cap. They also saw a revision of the Morgan Stanley Capital International index with Mytilineos and Ethniki Bank being candidates for the MSCI standard index. But finally, the regular restructuring of the MSCI indexes for August was without Greek interest, as there was no change for the domestic shares. We note that we did not mention anything about these during this period.

The institutional players for the time being are placed in the Bank shares through packages and from the statistical analysis this morning the NBG share has the possibility for continuation to rise while PIR is moving steadily sideways without any indications for an upward shake. ALPHA has a ceiling near the closing of the first session of August at 1.149 euros with a repetition at the closing of 5 August at 1.147 and yesterday it closed at 1.1475 euros so today it clarifies for this technical picture with a closing over 1.150 euros. EUROB is facing the high of 0.811 euros it showed at the end of July as it has closed for three days over 0.8 euros. Therefore, exceeding the DTR of the level of 561 points, which is a condition for the market to continue upwards comfortably, will not be an easy task. In this case today an accumulation between 895 and 897 units will be the result of preparations for this made yesterday.