Market Comment - In the Spotlight

			Manos Chatzidakis -Beta Sec.

           Market Comment

Heavy trading on Friday (€290m – highest in 22 months) and positive momentum in banking sector helped General Index to finish the week at the highest level of the week range and the highest since August 2, 2011. The bank stock index on the Athens bourse registered gains in excess of 68 percent last week alone. As market remains short term technically overbought, a profit taking potential should be considered as quite possible for today.  Focus again will be around banking stocks which set the tone to the trend and attract the vast majority of day traders.

         In the Spotlight

Bank of Piraeus: Bank of Piraeus will announce its 1Q results after market close and a conference call will follow at 18:30 (GR). We expect positive bottom line due to negative goodwill from the absorption of the Cypriot banks while investors will focus on net equity to capital needs to reach CT1 requirements.

In order to participate in the teleconference:

         Greek participants:               +30 211 180 2000   or  +30 210 946 0800

         UK participants:                   +44 (0) 800 3769 250

         USA participants:                 +1 866 288 9315

Greece/EFSF: The European Financial Stability Fund (EFSF) on Friday disbursed the sum of 4.2 billion euros to Greece following the decision taken by its Board of Directors on May 15. According to an announcement, the funds were transferred to Greece in cash and the maturity period expires on May 17, 2043. Friday’s release is the first part of a dual tranche totalling 7.5 billion euros from Greece’s rescue loan, approved by Eurogroup last week. The disbursement of the second part of 3.3 billion euros will be made in June, and is conditional on the implementation of certain prior actions agreed by Greece and the troika of its international lenders (EC, ECB, IMF). The statement further said that Greece has so far received 120 billion euros from the EFSF of the total 144.6 billion committed.

Greece/Banking sector: Greek authorities are expected to have completed the sale of Hellenic Postbank and Proton Bank by July 15, according to a revised memorandum.The text of the memorandum, released by the European Commission on Friday, also noted that non-systemic banks currently controlled by the Hellenic Financial Stability Fund - Hellenic Postbank and New Proton Bank- must be sold by July 15. All other non-systemic banks which will not be able to cover their capital needs by this date, will be led to liquidation or to be absorbed by the four systetmic banks of the country (National Bank, Alpha Bank, Piraeus Bank and Eurobank) in cooperation between the HFSF and the Bank of Greece.

Greece/Merchant Fleet: The number of Greek-flagged ships declined by 3.7 percent in March compared with the same month in 2012, according to figures released on Friday by the Hellenic Statistical Authority (ELSTAT). However, the total capacity of the Greek merchant fleet (concerning ships of 100 deadweight tons or more) declined by just 0.3%.