Market Comment - In the Spotlight (Manos Chatzidakis)

Market Comment

 

General Index closed at its lowest point in two months yesterday, but the major midday losses were contained and turnover remained above the 100-million-euro mark. Specifically General index fell 0.80 pct to end at 1,149 points, its lowest closing since May 21, although it ended off the day’s lows of 1,138.63 points. Turnover was a strong 106.89 million euros. Absence of major domestic news flow may preserve volatility in today’s session as geopolitical developments remain in focus. We note that “Anemos” new shares and Lamda Development shares from the capital increase start trading today in ASE.

¢           In the Spotlight

Greece/Central Government Budget Deficit: Greek Finance Ministry said that H1 2014 central government budget deficit narrowed to EUR2.42bn vs EUR4.99bn deficit last year, beating target deficit of EUR3.86bn.

¡  On a further positive note, Greece recorded a primary surplus of EUR707m from EUR1.51bn a year ago, vs target deficit of EU635m.

¡  Revenues EUR23.6bn vs EU22.6b yr earlier; coming above target of EUR23.4bn

¡  Spending fell to EUR26bn vs EUR27.6bn a year ago; below target of EU27.2bn

Greece/Current Account Deficit: Bank of Greece stated that Greece January-May 2014 current account deficit settled at EU2.49bn against EUR3.32bn deficit over the same period last year. That said, May 2014 current account deficit reached EUR246m compared with a EUR69.6m surplus a year earlier.

¡  On a five- month (Jan-May) 2014 basis, Bank of Greece announced that

¡  Travel receipts increased to EUR1.95bn against EUR1.77bn a year ago

¡  Trade balance deficit amounted to EUR7.75bn vs EUR7.19bn deficit in Jan-May 2013

¡  Service balance surplus advanced to EUR4.32bn vs EUR3.49bn surplus in 2013

¡  Income balance showed EUR1.03bn deficit, while current transfers a surplus of EUR1.97bn

Greece/Industrial Turnover Index: National Statistical Authority announced that Greece May 2014 industrial turnover index (measuring both the domestic and external markets) fell by 4.9% y-o-y (vs up 0.4% y-o-y in May 2013).  May 2014 mining turnover jumped 57.1% y-o-y, while, in contrast, manufacturing index dropped 5.6% y-o-y. In turn domestic turnover index posted an increase of 4.2 % with the external market turnover index declining 14.2% y-o-y in May 2014.

PPC: Public Power Corporation on Monday announced electricity rate increases up to 11 pct for household customers with electricity consumption of up to 800 kW over a four-month period and rate declines of up to 3.4 pct for small- and medium-sized enterprises, starting from July 25. Household rates with consumption higher than 800 kW, night discount rate and the social household rate will remain unchanged. The increase in low consumption electricity rates covered around 2,160,000 homes, mostly holiday homes, while the trade weighed increase on electricity bills was 11.1 pct. On the other hand, electricity rate reductions will cover around 1.4 million small- and medium-sized enterprises, for a trade weighed decline of 3.4 pct on electricity bills. These changes are neutral for PPC results as they offset any positive or negative impact on company’s revenues.

Anemos: As of today the 82,667,000 shares of the company are admitted to trading on the Main Market of ATHEX, under the “Alternative Electricity” sector. The OASIS Code is “ANEMOS” and the start price of trading is set at € 1.70 per share. There is no floor /ceiling trading limit for the first three days of trading.

Lamda Development: As of today the 35,294,117 new common shares of nominal value EUR 0.30/share, issued as a result of the recent share capital increase (€4.25/share) will debut trading on the Athens Stock Exchange.

FFGroup: The company announced that ex-date for the capital return of €0.75 per share is set on September 23. Payment day is September 30.

NBG: National Bank of Greece will release 6M/2Q:14 earnings results on August 28 after market close (17:30). A conference call for the presentation and discussion of results is scheduled to follow at 19:00 Greek time the same day.

Fourlis: Fourlis will release its Q2/H1 results on August 26 after market hours. The next day the management will host a conference call at 17:00 GR time.

Motor Oil: The company reached 87.81% stake on Cyclon (previous 82.87%).