Athens Stocks rose in the wake of the new tax bill regarding dividends and stocks transactions, as the General Index recorded gains of more than 2%, despite banks’ marginal decline (-0.01%).
Analysts say that the tax relief was the positive domestic catalyst, which enabled the Greek market to extend recent gains, while they remain positive regarding the developments of the forthcoming EU summit next week.
The new taxation will surely have a positive effect on the EPS forecasts and valuation exercises on most of the equities, mainly the ones with high dividend payouts and high intra-group dividends, according to analysts. The stocks that benefit the most are OPAP, Motor Oil, Hellenic Petroleum and Titan Cement.
They also note that market conditions have been developed enough to maintain the short-term upward trend, however the possibility of profit taking movements cannot be ruled out.
"On the new state tax policy, OPAP’s effective tax rate will fall sharply to 30% from the current estimate of 50%, boosting EPS so buyers jumped in," Kostas Zouzoulas, head of analysis at Axia Venture Group, told Dow Jones Newswires.
"Other gaming policy changes bode well for OPAP to enter internet betting and slot machines even if the VLTs are low margin and may not be in sufficient number to cover all its network," he added.
Across the board, the General Index ended at 1567.83units, up 2.18%, while intraday profits reached 2.66%. Total turnover was EUR132.45mn on Wednesday, while approximately 47.98mn units were traded. A total amount of 122 rose, 111 remained unchanged and 52 declined.
Analysts say that the tax relief was the positive domestic catalyst, which enabled the Greek market to extend recent gains, while they remain positive regarding the developments of the forthcoming EU summit next week.
The new taxation will surely have a positive effect on the EPS forecasts and valuation exercises on most of the equities, mainly the ones with high dividend payouts and high intra-group dividends, according to analysts. The stocks that benefit the most are OPAP, Motor Oil, Hellenic Petroleum and Titan Cement.
They also note that market conditions have been developed enough to maintain the short-term upward trend, however the possibility of profit taking movements cannot be ruled out.
"On the new state tax policy, OPAP’s effective tax rate will fall sharply to 30% from the current estimate of 50%, boosting EPS so buyers jumped in," Kostas Zouzoulas, head of analysis at Axia Venture Group, told Dow Jones Newswires.
"Other gaming policy changes bode well for OPAP to enter internet betting and slot machines even if the VLTs are low margin and may not be in sufficient number to cover all its network," he added.
Across the board, the General Index ended at 1567.83units, up 2.18%, while intraday profits reached 2.66%. Total turnover was EUR132.45mn on Wednesday, while approximately 47.98mn units were traded. A total amount of 122 rose, 111 remained unchanged and 52 declined.
