Market Comment - In the Spotlight (Μάνος Χατζηδάκης)

Friday, July 25, 2014

Market Monitor

General Index ended significantly higher on Thursday on optimism regarding potential credit rating upgrade and PM comments about the Presidential election. The index ended 2.07 pct higher at 1,176.13 points near day’s high, with turnover at €99.12mn. For today’s session we expect a positive opening while market may stabilise around current level ahead of the weekend.            In the Spotlight Greece: PM Antonis Samaras expressed his optimism that the country will not hold early general elections in view of the election of the new Greek President of Democracy. Greece/IMF: The International Monetary Fund insists that Greece’s debt needs to be restructured and is waiting for the issue to be discussed this fall in the context of the Greek economy’s next assessment, a spokesman confirmed on Thursday. In a press article IMF officials state that “if Greece fulfills its program commitments, its eurozone peers have agreed to as much additional lightening of the debt as is necessary, so that they contribute to the reduction of the Greek debt to 124 percent of the gross domestic product by 2020, and considerably below 110 percent of GDP by 2022. As Greece has achieved a primary fiscal surplus, the IMF expects that these issues will be discussed with the Europeans in the context of the sixth assessment in mid-September,” and “with an intention as always to have an agreement as soon as possible.” Greece/Tourism: Athens hotels reported a significant increase in room occupancy rates in the first half of 2014 (68%) and a small increase in room rates. Cyprus Airways: Cypriot Ministry of Communications said that over 15 organizations have expressed initial interest in buying Cyprus Airways (shares or assets), among them Greece’s Aegean Airlines and Ryanair. Cyprus Airlines is put for sale by the Cypriot government, which holds 93% stake. Note that Cyprus Airlines recorded heavy losses over the past years and managed to stay afloat via selling assets (ie two slots at London's Heathrow Airport). OPAP: According to the Greek Gaming Committee revenues from illegal gaming activities in Greece estimated to €5.5-6bn. On our estimates the related GGR is at €170 - 180m a market that is OPAP targeting with the introduction of VLT’s. PPC: In an announcement Italian IPTO Terna said that “ Greek TSO privatization is an option that it will be evaluated”. Piraeus Port/Cosco: Piraeus Port BoD approved Cosco container terminal agreement, a EUR230m investment project which calls for the construction of a west pier container terminal at Piraeus port, as well as machinery upgrades. MIG Real Estate (H1 2014):The company posted net earnings of €1.69mn vs €0.232mn in 2013. Results are affected by positive revaluation of real estate portfolio by €0.421mn. Coca-Cola HBC AG: Τhe Company announced the admission to trading on the Athens Exchange of 56,908 ordinary registered Company's shares with a par value of CHF 6.70 each which have already been issued following the exercise of stock options granted under the Company's stock option plan during the period starting from 1/01/2014 to 30/06/2014. The Ordinary Shares will commence trading on the Athens Exchange on 28/7/2014. LAMDA Development: Consolidated Lamda Holdings S.A. sold on 22.7.2014, 797,065 Company's common shares for a consideration of 3,387,526.25 euros.