Friday, September 12, 2014 - Market Monitor (Manos Chatzidakis)

Market Comment

General Index ended slightly lower on Thursday in thin trading conditions. The composite index of the market eased 0.36 pct to end at 1,166.60 points, after rising as much as 0.91 pct early in the session. Turnover was a thin €63.96m. Investors and traders remain on sidelines expecting fresh news also limiting downside pressure. Today’s agenda may provide incentives for action as events have a wider range of impact.

S&P’s sovereign rating review for Greece is expected today, alternate finance minister will present 8 month budget execution at 11:00 while European Union finance ministers will meet in Brussels. 

In the Spotlight

Greece: Council of State orders temporary suspension of Sunday opening. Final decision to be taken on November.

Greece/S&P: The International Monetary Fund on Thursday refuted reports that it would be hosting a meeting of Greece’s creditors to discuss the country’s state debt this fall. In other news S&P is scheduled to review Greece’s credit rating today. It currently assigns a B-/Stable rating which stands one notch below Fitch (B/Stable), but one notch above Moody's (Caa1/Stable).

Greece/Unemployment: National Statistical Authority announced that unemployment in Greece eased marginally to 27% in June from 27.1% in May 2014 (vs 27.6% in June 2013).

Greek Bank Reliance on ECB Liquidity: Bank of Greece stated that Greek Bank reliance on ECB liquidity stood at EU44.6bn at end-August same as in July 2014. Emergency Liquidity Assistance, in turn, settled at EUR0.67m in August vs EUR1.6m a month earlier. 

Cyprus: Cyprus is unlikely to receive the next tranche of rescue funds from international lenders after apparently falling foul of them over new legislation on loan foreclosures, the island’s government said on Thursday. European Union finance ministers meet on Friday to discuss the bailout program and government spokesman Nikos Christodoulides said disbursement at the end of September of the 436 million euros was unlikely to be on the agenda.

Alpha bank: Alpha Bank will announce a 2,200 employee VRS. Recall that a VRS of 2000 employees was held by NBG in Q4 2013 with incremental savings of €120m.