Market Comment - In the Spotlight (by Manos Chatzidakis)

       Market Comment

Growing concerns about additional capital requirements for banks weighed as early gains (+1.3%) were swiftly wiped out in a field day for sellers. Banks took the worst beating, with their index down 3.28 percent at the end of the day. Turnover amounted to €74.2mn, up from Monday’s €50.2mn. Limited news flow may keep volumes low extending recent consolidation pattern.

        In the Spotlight

Greece/PDMA: Greece sold 1.14 billion euros of six-month treasury bills on Tuesday to roll over a maturing issue, the country's debt agency PDMA said. The T-bills were priced to yield 2.0 percent, down two basis points from 2.02 percent in a previous sale in August. The sale's bid-cover ratio was 2.5, down from 3.03 in the previous sale.

Greece/Privatizations: Helexpo, the state company that organizes major exhibitions such as the Thessaloniki International Fair, is in the last stages of drawing up its privatization plan. Helexpo’s privatization has been examined several times in the past, but the conditions are now seen as ripe. That is because the participation of a foreign investor is expected to contribute to reinstating the international character of the Thessaloniki International Fair and restoring its past prestige, as well as adding to its commercial profile so that it is on an equal level with similar events held in other countries.

Greece/AIA passenger traffic: August 2014 passenger traffic at Athens International Airport (AIA) rose 23% y-o-y to 1.8m. In specific, AIA domestic passengers were up 23.9% y-o-y, while international visitors increased 22.1% pct in August.  In January-August 2014, AIA passengers advanced 18.9% y-o-y or 1.6m to 10m; foreign and domestic traffic posted increases of 19.8% and 17.2% y-o-y, respectively.

Eurobank: Reportedly the bank seeks to sell a corporate debt portfolio of €470mn.

Bank of Cyprus: Bank of Cyprus said that it expects its shares to relist on the Cypriot and Athens stock exchanges by the end of October. The bank extended the deadline for the stock offering until September 18. In other news Moody’s placed the deposit rating of the bank in review for a possible upgrade in view of the successful completion of the EUR 1.0bn share capital increase.

Piraeus Bank: In an interview CEO Thomopoulos stated that the Greek economy will not return to the path of growth without a restructuring of the private debt

Cyprus Airways: Today is the due day for binding bids.

Attica Holdings: EGM yesterday approved the entrance of Fortress as a strategic investor in the ferry operator. Fortress will fully cover two Blue Star (subsidiary of Attica) issues a € 25mn plain vanilla bond as well as a €50mn convertible bond converted to Attica shares.