Market Comment - In the Spotlight (Manos Chatzidakis)

Market Comment

General Index tested the waters above the benchmark’s 1,000-point mark on Wednesday and after some mild profit taking stayed below the psychologically key level with marginal losses for most indices, albeit with a satisfactory trading volume. General index ended at 993.73 points, shedding 0.14 percent from Tuesday’s closing of 995.10 points. Investors affected from various reports regarding Greek banks capital needs and speculation ahead of EBA announcement on Sunday.

Blue chips presented a mixed picture, with National Bank adding 5.05 percent on the prospect of a 20 percent share sale in Finansbank, while Metka gave up 4.09 percent and Jumbo lost 4.05 percent. Turnover amounted to 120.7 million euros, down from Tuesday’s 158.7 million.

Domestic market may keep a waiting stance ahead of stress test results today following the trend of major European markets.

¢           In the Spotlight

Greece: A meeting between Prime Minister Antonis Samaras and Deputy Premier Evangelos Venizelos on Wednesday resulted in the coalition leaders agreeing that Greece should try to build up to an agreement with its lenders by the December 8 Eurogroup to exit its bailout.

Cyprus: Cyprus’s economy to see modest growth next year, outlook remains difficult with banks vulnerable to rising non-performing loans, IMF staff say in report on country published yesterday; GDP to fall 3.2% this yr, less than -4.2% forecast in last report in July; grow 0.4% in 2015, unchanged from July forecast; Bank system NPLs stood at 57% of total at end-July; Corporate NPLs at 50%, construction sector NPLs 73%, NPLs on primary-residence mortgages ~40%

Greece/Tax Debts: Tax debts owed by Greek households to the Greek state reached a new high in September, amounting to 70.16 billion euros up 1,3%. Recall that total tax debt in August was 69.24 billion.

Greece/Travel Receipts: Greek January-August 2014 travel receipts posted an increase of 11.1% y-o-y to EUR9.7bn. Recall that Jan-Aug 2014 arrivals to Greece rose 22.1% y-o-y to 15.3m. In specific, US, France and UK travel traffic up 24.8%, 20.7% and 15.6% y-o-y to 386k, 1m and 1.4m, respectively.

Greece/Building materials: September 2014 building materials' prices fell 2.9% y-o-y (down 1.8% in Sep 2014), reflecting Greece’s building activity drop.

NBG: Finansbank plans to sell as many as 715 million shares in a secondary public offering. The pricing of the offer will be decided later, according to a public filing from NBG. The stock closed yesterday at 3 lira, indicating the sale could raise about 2 billion lira (~€700 million). NBG reiterated its plan to cut its holding in Finansbank to a maximum 60 percent by the end of 2015 in a separate filing yesterday. The capital increase will raise Finansbank’s free float to 20.3 percent and lower NBG’s stake to 79.7 percent, increase liquidity hence institutional interest in the stock.

NBG/Pangea: Pangea acquired 93% of MIG Real Estate through cash public offer. Ath this point Pangea will not proceed with a squeeze out.

PPC: Following the announcement dated July 23rd, 2014, PPC S.A. informs that, after the relevant application of its 100% subsidiary PPC Renewables S.A. (PPCR), the Regulatory Authority Energy for Energy (RAE) granted to PPCR electricity generation licenses for two Wind Parks of total capacity of 106MW and with a total budget of € 127,200,000 million, in Rodopi.