Market Comment
Despite banking
stocks bounce (+3.75%) the index failed to close at a positive territory in
yesterday’s session although midday posted gains of +0.71%. Selling pressure
on commercial and industrial large caps (FFGroup -6%, CCHB -5%, Titan -5%
Jumbo -4%) kept the index negative (-0.25%) for ninth consecutive session.
Results announcements didn’t help much as geopolitical tensions continued
affecting investor’s psychology across all markets. Cumulative drop of the
main index reached 10.2%.
Another day of
volatility and nervousness is much expected in domestic market. Short term
strong oversold seems not an adequate argument for a sustainable bounce and
main focus continues on developments in Russia and Ukraine.
In the Spotlight
Greece/Primary Surplus: Greek
Finance Ministry stated that H1 2014 primary surplus reached EUR1.8bn,
against a primary deficit of EUR1.9bn over the same period in 2013. Excluding
the overdue debt repayment program, Greece ‘s primary surplus
rose to EUR2.2bn.
Greece/Athens Airport passenger traffic: Athens
International Airport (AIA) July 2014 passenger traffic rose 22.2% y-o-y to
1.45m; traffic from abroad increased 21.9% y-o-y, while passengers from
Greece were up 23% y-o-y. In January-July 2014 AIA total passengers advanced
18.1% y-o-y; up 19.3% 15.9% from abroad and Greece, respectively.
Greece/Imports-Exports: National
Statistical Authority said that Greek imports were up 9.4% y-o-y (to
EUR4.18bn) in June, excluding oil products the value of imports grew by 14.6%
y-o-y. In turn, June exports increased 11.3% y-o-y (to EUR2.46bn), but down
0.9% y-o-y adjusting for oil products.
Motor Oil: The company announced
that it holds 89.14% stake of Cyclon Hellas
ASE/July Stats: Net
capital inflows from foreign investors in the Greek capital market for 21th
consecutive month were more than outflows. Participation of foreign
investors in the total market capitalization reached 60.4% compared to 60.6%
at the end of previous month decreased by 0.3%. In case the participation of
HFSF capitalization was counted (€18,161.16 million or 27.3%) the
participation of foreign investors amount at 43.9% compared to 43.5% at the
end of previous month increased by 0.9%. Foreign investors in July made 68.4%
of total turnover.
Moody's: In other news
Moody’s upgraded HTO's corporate family rating (CFR) to Ba3 from B2 - stable
outlook. Moody’s raised HTO’s probability of default rating (PDR) to Ba3-PD
from B2-PD, while upgrading the senior unsecured ratings on the global
medium-term note program (GMTN) and the global bonds issued by HTO PLC (HTO's
fully and unconditionally guaranteed subsidiary) to (P)Ba3 from (P)B2 and to
Ba3 from B2, respectively. The outlook on all the ratings is stable.
According to Carlos Winzer - Moody’s Senior Vice
President - HTO upgrade to Ba3 reflects Greece’s sovereign ceiling which was
recently upgraded, while signifying HTO’s improved liquidity risk management,
higher operating performance and successful deleveraging efforts.
HTO (Results 2Q/H1 2014): HTO
announced a better than expected Q2 on strong EBITDA margins helped by
deceleration of decline in Greek fixed telephony, lower operating costs
(-5.6%) and lower interest expenses (€46m vs €69.4m). On the
other hand mobile operations rates were negative across all geographical
segments posting a 7.1% drop on sales and 10.6% on EBITDA. Q2 highlights:
¡ Net Debt
at €1.5bn, down 37%, or €0.9bn, from Q2’13
¡ Net
income up 21%, to €69mn; EBITDA margin up 130bps
¡ Domestic
market outlook is positive (decelerating contraction, base effect, lower
financials) while cost cutting initiatives retain EBITDA margins at healthy
levels.
*Results in 2013 include Globul subsidiary.
Coca Cola (Results 2Q/H1 2014): CCHBC
announced a broadly in line set of result in Turnover and EBITDA while missed
consensus net earnings estimate by 4%. In specifics:
¡ Sales in
Q2 reached €1.852bn (-5% vs
Q2 2013).
Volume declined by 3% in the second quarter and the first half of 2014.
Established markets, which had a slow start to the year, showed a sequential
improvement with 2% decline in the quarter, bringing the half year decline
rate to -4%. Italy, Ireland and Switzerland showed sequential improvement,
partly due to Easter falling in the second quarter. Volume in Developing
markets declined by 5% in the quarter. Hungary on the other hand,
demonstrated growth in nearly every category. This segment has also shown an
improving trend compared to the first quarter, bringing the half-year decline
rate to under 7%. Emerging market volumes, down 3% in the second quarter and
2% in the first half.
¡ Comparable
EBIT amounted to €194 million in the quarter, €15 million higher than the
prior period, leading to a 130bps margin expansion to 10.5%. EBIT growth
realised in Developing and Established markets, compensated for the EBIT
decline in Emerging markets driven by Russia and Ukraine. Overall, positive
developments in currency-neutral net sales revenue per case, lower input
costs and lower operating expenses more than offset the impact of
unfavourable foreign exchange movements and the shortfall in volumes.
¡ Gross
profit margin increased on the prior year both in Q2 and the half-year.
Operating expenses as a percentage of net sales improved by 50 basis points
in Q2. Comparable EBIT and EBIT margin demonstrated solid growth in Q2
compared to the first quarter and prior-year quarter, of 8 percent and 1.2
percent respectively.
¡ Profit
after tax came at €134.4m while FCF in Q2
reached 172.6m (vs 137.2 in Q2 2013). Management stated that Russian market
trends lead to a more cautious outlook for H2.
Eurobank Properties (Results 6M 2014): reported
1H14 Net Operating Profit of EUR 24.4mn vs. Net Loss of EUR 8.8mn the year
ago period; Rental Income increased by 20% at EUR 22.8mn due to the new
additions at the beginning of Q1; Net gains from fair value adjustments at
EUR 2.4mn vs. Net losses of EUR 27.6mn the year ago period; property taxes
increased by 46% at EUR 2mn due to changes in the relevant tax regime on
investment property; As of 30-June-2014 Group’s NAV amounted to EUR 830mn or €8.20/share
down from €8.28/share
at the end of Q1 due to dividend distribution; current
stock price represents a 15.85% premium vs. NAV/share price on 30-June-2014.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0 σχόλια:
Δημοσίευση σχολίου
Ο σχολιασμός επιτρέπεται μόνο σε εγγεγραμμένους χρήστες