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By Alexandra Tombra
The “blow” that the Athens Stock Exchange received today was strong, with the banking sector at the center of large sell-offs, taking the sector index to new all-time lows with concise procedures, forecasting that the next day will be extremely difficult.
Specifically, the General Index closed with losses of 2.67% at 595.97 points, while it moved between 591.62 points (-3.38%) and 609.37 points (-0.48%). Turnover amounted to 69.1 million euros and volume 59.5 million units, while 3.3 million units were traded through pre-agreed transactions.
The large capitalization index closed with a fall of 2.82%, at 1,402.76 points, while at -2% Mid Cap completed the negotiation at 872.31 points. The banking index closed with losses of 8.32% at 251.78 points.
Turnover may have increased today (something that has long been coveted by domestic investors), but this development was accompanied by a sell-off, especially in the banking sector, as Piraeus was at the center of a sale. unprecedented massive. The reason was the different scenarios for the management of Cocos by Piraeus Bank, which according to Capital.gr explains, the bank has informed SSM that it intends to pay in cash the coupon, amounting to 165 million euros, which expires on December 2, 2020 and is awaiting supervisor approval.
Meanwhile, with the expiration of the Cocos and the need for a drastic reduction in delinquencies in the management of Piraeus Bank, the 3 largest shareholders (John Paulson, Aristotle Mystakidis and the Bienville fund) have submitted a proposal for a capital increase 800 million share. According to sources at Capital.gr, the Cocos issue is expected to be finalized in mid-November, while the share capital increase proposal will be considered at a later time and always in conjunction with the HFSF conversion of CoCos.
These various scenarios unleashed significant pressure on the stock, which lost 25% of its value, while dragging the entire industry to record lows of 244 points (at the sector level), as initial fears about the need to capital reinforcement. One more after the suffered decade of crisis. And as El. Zacharakis from Fast Finance comments, as long as there is no solution for the banking sector, the shares will be in the hands of the sellers, as there is no clear outlook for tomorrow.
At the same time, according to Capital.gr, the intensification of restrictive measures due to the health crisis exerted double pressure on the economy and especially on the state coffers. After all, at a time when the country’s largest region, Attica, is under new containment measures due to the pandemic, budget revenues diverged by € 2.2 billion in September due to the health crisis and spending. excessive due mainly to PDE payments. Caution and negative climate in the market will hardly go away after recent events.
Board
On the board now, Piraeus “stopped” its slide to -24.26%, with Alpha Bank completing at -7.17%. Eurobank recorded losses of 6.38%, Ellactor closed at -6.14%, NBG at -4.66%, while more than 3% was the fall of OPAP, Biochalco, Motor Oil and PPC.
Losses at Lambda, Titan, Fourli, HELEX, GEK Terna, Hellenic Petroleum and PPA exceeded 2%, while those at Mytilineo, Terna Energy, Jumbo and IPTO exceeded 1%. Small losses for Saranti and Coca Cola, while Aegean, OTE and EYDAP made small gains.
