The Greek stock market moved with increased scepticism for the week that ended on 23.10.20. Investors remain "hooked" on the daily covid-19 cases reported as the second wave of the pandemic develops. On a paneuropean basis the picture becomes more difficult day by day and the probability or the implementation of local lockdowns affects sectors like transportation, restaurants, tourism as well as recreational activities.

When such investors' scepticism appears, it cancels even strong positive news like the trading at historical lows of the Greek benchmark yields that happened one week ago. Time passes and it is likely that we are close to the end of the 6-month period of stock market consolidation that started last May.If a breakout from the defined trading range happens, expect it to be violent either way.

We consider the strong selling pressure of Thursday as a sign of alert. It was a drop of 1.79% for the Athens General Index that closed below 610 points. The bellwether stock of Hellenic Telecommunications Organisation (OTE) as well as all the banks' stocks closed with heavy losses. In addition, the downward drifting of the two oil refineries stocks (hellenic Petroleum, Motor Oil) continued. We point out the defensive behaviour of the stock of Coca Cola HBC which has a 24% weight in the General Index calculations and with a current market cap of €7.8 bln acts as a wave breaker in difficult days for buyers. Overall, a verified close below the range of 610-635 points for the General Index will open the door for a downward leg to the next support at 585-590 points.

On Friday the 23rd and after the market close two reviews are expected on the rating of the debt of the Greek Public. S&P will report its review with current rating standing at BB- with stable outlook. DBRS will also report its review with current rating similar to S&P's at BB(low) with stable outlook. We note that Greece's public debt rose to €333.7 bln in Q2 2020 from €329.5 bln in the previous quarter according to data from the National Statistics Service (ELSTAT). General government revenues amounted to €18.3 bln up from €17.5 bln in theprevious quarter while spending rose to €23 bln vs €19.9 bln in Q1 2020. Primary deficit amounted to €3.5 bln.

Finally, the 10year treasury benchmark yield moved slightly upwards during the week to finish at 0.90%-0.95% vs the historical low of 0.75% that it printed during the previous week.