Selected Greek equities moved on a positive tone during the week that ended on 9.10.20. Given that the Athens Stock Exchange remains a strictly selective market with shallow depth, especially for equities that are considered "all weather", we detected buying interest from fearless longer term investors for the stocks of Public Power Corporation (PPC, +10% WoW), Mytilineos (MYTIL +7.6% WoW), Opap (+7% WoW) Piraeus Port Authority (OLP, +6.95 WoW), Gek-Terna (+3.30% WoW). Buyers were present consistenly, their interest based on the positive fundamentals of the above mentioned companies.
On the very positive news of the week we note that Microsoft announced a €400mn investment in Greece, by creating 3 different based large data centers, which will store and manage data in the cloud computing. The value added benefit of the investment is estimated at €1 bn. The data centers will act as regional centers for neighboring countries as well.
According to ATHEX monthly statistics for September 2020, total foreign investors recorded outflows of €72.08m in the month. That was the 10th consecutive month with outflows from foreign investors. International investors in September 2020 accounted for 49.2% of the transactions’ value (in the previous month they realized 54.5%, while in September 2019 they had accounted for 51.8% of the transactions’ value). Greek retail investors accounted for 25.3% of ATHEX’s transactions in Sep-20 compared to 22.5% in Aug-20. Accounting for ATHEX’s total market cap, total foreign investor’s share slipped to 64.85% in Sep-20 vs 65.75% in August, while total market capitalisation settled at €37.06 bn, lower 1% m-o-m.
Historically, the month of October has posted some serious monthly losses for the Greek stock market (-9.12% in 2000, -27.9% in 2008, -13.7% in 2014, -7,5% in 2018). However, 14 times out of 20, October was positive during the last 20 years.
Furthermore, during the month we expect the mandatory offers for the "Galaxy" securitisation project of Alpha Bank, a huge one, with €10.5 bn NPEs included. Positive news from this project will help to depict the landscape regarding the forthcoming Greek Bad Bank scheme and the terms of participation in this. We also expect during the month the voting of the new regulatory framework regarding the domestic electricity market (target model), a cornerstone for better future planning for the domestic energy players.
Finally, S&P rating agency will publish their report on the Greek economy on 23.10.20.