Few had predicted at the beginning of the year that the General Index would reach and exceed 2,600 units and it is obvious that they are justified in the heart of the summer, a period that usually lacks emotion in the Greek stock market.
The closing of yesterday's meeting found the most characteristic stock market index of the Greek market at 2,623,91 units, down 0.18% from the previous closure which is the highest after the first ten days of November 2009, almost 17 years ago, while for three consecutive meetings the market was held over 2,600 units. The G.D.'s performance from the beginning of the year is 23.73% and it is certain that some may seem excessive.
Many share concerns due to the wars in the Middle East and Ukraine, the rise in fuel prices, the rise in inflation, the significant chances of increasing interest rates and the fairly widespread view of very high valuations in international stock exchanges and the existence of a bubble in Artificial Intelligence.
So what is it that brought Greek stock market to new years high? Several factors are the answer, internal and external. Let us start from abroad, as it is true that new highs have not only occurred in our country but also in many other markets in Europe and the USA, as German DAX 40, as well as American S&P 500 and Dow Jones Industrial, achieved in the first three days of the week (and August) new historically intra-session high.
So what happened in recent days at international level and these indicators were found at these levels? First of all, they received valuable help from indications and information for a significant improvement in the situation in the Middle East and for an imminent agreement to return normality to the Straits of Hormuz. This information significantly dropped the price of crude oil and European gas and, together with the estimates of the inflation trend over the next few months, and led to a relative decline in the yields of American and other government bonds, which have been close to the highest levels since 2009 and had begun to strongly concern investors in the stock and bond markets.
The improvement of the climate in international stock markets also caused investors to briefly forget their concerns since the appearance of US commander Fed Kevin Wars in mid-week. Apart from all this, however, a very key factor that has given impetus to many international stock markets is the very good corporate results of the last few days in the USA and Europe, not only in the technological sector but also in general the fact that the great pressure on the shares in the Artificial Intelligence sector that damaged the markets throughout July has begun to decline significantly.
But speaking of corporate results and the performance of listed companies, we find a reason to return to our own. Without a doubt, the driving force of our stock market is the performance and prospects of listed companies.
The first installment of the semester results at Euronext Athens has so far provided very good news to investors, as in most cases investment expectations have been overcome and in several cases we have seen administrations raise their own estimates for their future financial performance. All banks that have so far announced their results have satisfied their shareholders and stock analysts, who are again moving on to upgrades of their estimates of future bank performance, raising target prices.
Only yesterday we had positive reports on the banking sector from two very large American investment banks, Morgan Stanley and Goldman Sachs. Outside the banking industry, significant upgrades for many listed have been in recent weeks from Greek and international stock analysts, largely due to their improved performance and prospects. For the construction of GEKTERNA, the cement industry Titan, telecommunications OTE, real estate companies, Metlen, the refineries MOTOR OIL HELLAS and HELLENiq Energy as well as for smaller businesses, such as Profile, Lavipharm, Alter Ego, Thrace Plastics, Kri.
In addition to the results, they have a positive effect on stock trading behaviour and the interesting corporate news that have been coming at a steady pace on the market in recent times, whether they are major business agreements between listed persons or news involving only one. For example, on yesterday we had the conclusion of the agreement between Aktor Group and MOTOR OIL in the field of waste and waste management and environmental projects, the announcement of the entry of the large French investment fund Meridiam into the work of the GSI cable as a partner of IPTO, the announcements of Coca Cola Hellenic regarding its entry into new products, the undertaking of an important energy project by AVAX.
Such news comes daily to the Greek stock market and it is certain that they have played, and will continue to play, a very positive role in its course. Of course, the Athens Stock Exchange could not go well unless there was the basic foundation, namely the good progress of the Greek economy and the trust of Greek and international investors in the country's fiscal policy and the certainty that things will not be done that will jeopardise the achievements of recent years.
If we had to make a summary of the situation, we would say that the good course of the Greek economy, the performance of Greek companies and their prospects are the main fuel that leads the Athens Stock Exchange race, which is interrupted or weakened when the international environment gets worse and stronger again when international stock, economic and geopolitical developments allow it. In recent days it is certain that the second, which we hope will continue.
