The narrowing of Greek bond spreads at three-month low signaled the impressive rise of Greek Stocks in a huge turnover of EUR240mn.
A Credit Suisse report, which upgraded the Athens market, contributed significantly to the positive sentiment, while market analysts attribute part of the rise to movements of short covering, while they expect the upward trend to remain.
They also expect increased volatility as consolidation is not expressed in a corrective trading session, while expectations for positive developments in the European “front” enhance the market’s confidence.
“There are a variety of positive catalysts helping outperforming banks," Manos Hatzidakis, head of analysis at Pegasus Securities, told Dow Jones Newswires. "Banks are catching up to broader market gains, as GGB bond spreads collapse. The potential for an EFSF GGB buyback and a Brady-style swap from private investors are generating positive expectations," he added. "
Kyprou Securities stated its cautious optimism in its morning report “since talks about potential ways to postpone the repayment of the €110bn support and potential buyback of Greek bonds at market prices – that could effectively lead to lower debt size benefit the ASE”.
“Tighter fiscal policies and their implementation combined with targeted GDP growth as of 2012 are prerequisites for the Greek State to regain the markets’ trust and have access to international debt markets. That would really lead the ASE to higher levels”, it added.
Across the board, the General Index ended at 1663.60 points, up 4.41%, moving upwards throughout the session. Approximately 111.38 million units worth EUR240.23mn were traded on Tuesday, while a total amount of 158 stocks ended with gains, 90 remained unchanged and 36 declined.
Banks soared at 1495points, up 8.07%. Eurobank and Alpha Bank stood out, gaining 10.75%, while Bank of Cyprus and National Banks rose by 9.39% and 7.65% respectively. Hellenic Postbank followed by 7% and Piraeus Bank by 6.02%.
A Credit Suisse report, which upgraded the Athens market, contributed significantly to the positive sentiment, while market analysts attribute part of the rise to movements of short covering, while they expect the upward trend to remain.
They also expect increased volatility as consolidation is not expressed in a corrective trading session, while expectations for positive developments in the European “front” enhance the market’s confidence.
“There are a variety of positive catalysts helping outperforming banks," Manos Hatzidakis, head of analysis at Pegasus Securities, told Dow Jones Newswires. "Banks are catching up to broader market gains, as GGB bond spreads collapse. The potential for an EFSF GGB buyback and a Brady-style swap from private investors are generating positive expectations," he added. "
Kyprou Securities stated its cautious optimism in its morning report “since talks about potential ways to postpone the repayment of the €110bn support and potential buyback of Greek bonds at market prices – that could effectively lead to lower debt size benefit the ASE”.
“Tighter fiscal policies and their implementation combined with targeted GDP growth as of 2012 are prerequisites for the Greek State to regain the markets’ trust and have access to international debt markets. That would really lead the ASE to higher levels”, it added.
Across the board, the General Index ended at 1663.60 points, up 4.41%, moving upwards throughout the session. Approximately 111.38 million units worth EUR240.23mn were traded on Tuesday, while a total amount of 158 stocks ended with gains, 90 remained unchanged and 36 declined.
Banks soared at 1495points, up 8.07%. Eurobank and Alpha Bank stood out, gaining 10.75%, while Bank of Cyprus and National Banks rose by 9.39% and 7.65% respectively. Hellenic Postbank followed by 7% and Piraeus Bank by 6.02%.
