Market Comment - In the Spotlight (Manos Chatzidakis)

Wednesday, July 23, 2014

Market Monitor

¢           Market Comment General Index fluctuated in a narrow range on Tuesday before finally ending the session with marginal gains (+0.10%) on reduced trading volume (€95.2m).  Despite the positive momentum in major European markets General index failed to follow the trend and consolidated on a mixed session as 68 stocks advanced and 49 declined at the end of the day. Seasonality and thin news flow may keep interest low in general and more focused in specific stocks in today’s session. Investors stay on the sidelines awaiting Q2 results announcements –starting next week- to take more decisive action in domestic market. ¢           In the Spotlight Greece/Public Debt: Eurostat announced that Q1 2014 Greek public debt narrowed 1% (to EUR314.8bn) vs Q4 2013, rising, however, 13.5% y-o-y against Q1 2013. From a total 174.1% of GDP, 131.3% were loans and 42.4% other securities. Greece/Tourism: Bank of Greece announced that January-May 2014 tourist arrivals in Greece increased 17% y-o-y exceeding EUR3.5m, while tourism revenues were up by a lower 10.6% y-o-y, suggesting reduced spending per capita. More specifically, EU arrivals advanced 18.7% y-o-y to 2.07m (eurozone +12.6% y-o-y) with visitors from third countries rising 14.7% to 1.5 million. In turn, German tourist arrivals fell 5.8% y-o-y in January-May 2014, while France and UK visitors posted increases of 13.9% and 25.5% y-o-y, respectively. On a final note, Greek travel balance recorded a surplus of EUR1.13bn, up 6.7% y-o-y over the same period a year earlier. Greece/Consumer Confidence: Consumer confidence in Greece improved by two index points in the second quarter of 2014 compared to the same period last year, reaching 55 points, though still significantly below the global average of 97 points, the latest Nielsen Global Survey of Consumer Confidence and Spending has found. Greece/Privatizations: State privatization fund TAIPED announced on Tuesday it has received two binding bids for the plot in northern Afandou, which includes a golf course, from M.A. Angeliades Inc for 26.9 million euros and from Dimand SA for 17.5 million. The three binding offers for the plot in southern Afandou came from M.A. Angeliades Inc. (13.9 million euros), T.N. Aegean Sun Investment Ltd (15 million), and I. Hatzilazarou Enterprises (12.35 million). The two plots cover a total surface area of 1.8 square kilometers. TAIPED intends to ask the two highest bidders for southern Afandou to raise their offers and then to choose the preferred bidders by August 8. The fund also announced the launch of an international tender for the sale of five overseas properties belonging to the Greek state. These are a building of 750 square meters in Washington DC, a property covering 960 sq.m. in New York, a 400 sq.m. building in Pretoria, as well as two properties in Ljubljana and Belgrade that have featured in previous tenders without success. Coca Cola HCBC: The Coca Cola Company (TCCC) –largest beverage corporation- announced yesterday its 2Q results posting single middle digit decline in most Southeastern and central European countries and Russia. Results are indicative for CCHB performance in 2Q. CCHB results announcement is scheduled for August 7 before market opening. Cyprus:  Ryanair will probably submit an expression of interest in troubled Cyprus Airways, which is up for sale. The Cypriot government in mid-July invited non-binding expressions of interest in its shares or assets in Cyprus Airways, a state-controlled airline which has posted heavy losses for years. The deadline for submissions is Wednesday, and requires a non-binding expression of interest to consider a potential binding offer. Intralot: The company signed amendment extending its contract in Washington DC until 2020.