6% dip in a week on the Stock Exchange

of Alexandra Tombra

The “Index” of the General Index was over 50 points this week, with the Athens Stock Exchange closing the fifth consecutive bearish session today, starting in May with the worst conditions and with a banking sector almost “hurt” after eight continuous declining meetings.

In particular, the general index closed with a fall 2.44% at 866.75 units, while today it moved between 880.75 points (-0.87%) and 864.05 points (-2.75%). The turnover amounted to 113.15 million euros and the volume to 40.87 million units, while 1.61 million units were traded through pre-agreed transactions.

The high capitalization index closed with a fall 2.76%at 2,090.96 unitswhile in -2.25% Mid Cap completed trading on 1,405.91 units. The banking index closed with losses 4.51% at 583.30 points.

On a weekly basis, the general index closed with a fall 6%while the FTSE 25 fell by 6.5%. The banking index closed with losses 9.53%.

Beautiful results burn beautifully

The sellers returned with intensity in May, reminding that the uncertainties that are still pending keep the risk high in businesses and economies, says M. Hatzidakis of Beta Securities in his weekly comment. The energy crisis, supply chain shortages and rising money costs as a result of the war and the spread of the pandemic have overshadowed all other domestic developments.

After an impressive set of results for the year 2021 with record profitability and rich dividends, the listed companies were in line with the international trend, increasing the degree of correlation with the foreign trend. Even business deals or gossip around them seem to have gone into the background as the duration of the impact has now raised concerns about the ability of companies to absorb costs while remaining satisfactorily profitable.

Inevitably, the focus has shifted to the international factor as the trend is dictated by the outside world, namely by geopolitical developments and key macroeconomic indicators. There are two key dates in the week that begins: On Monday, May 9, China will announce financial measures to deal with the pandemic that will affect the local stock market. On the same day, international interest will be focused on Russia as this date contains strong symbolism and it is possible that there will be announcements regarding the outcome of military operations.

The second date of significant market weight is next Wednesday, May 11, when the April inflation data in Germany and the USA are announced. The converging estimates of the Market expect an increase of 8.1% and 8.9% respectively, however the interest will focus on the structural part which is estimated to show a slight de-escalation compared to the previous quarter, a development that may be its main reading. communication of indicators.

The technical image

Technically, the General Index got into trouble after losing the significant price support at the level of 900 points. The break of the 200-day moving average, in addition to signaling a return to a declining market, gave acceleration and trading volume to the fall with a global dominance of sellers.

Successive closures at the low of the day do not yet show a de-escalation of the pressure while the daily oscillators do not show signs of underestimating, leaving open the possibility of continuing the trend to the next support point of 850 units. Around this level there may be some reaction which coincides with short-term devaluations that justify a move of easing and unloading of the indicators.

The change scenario now requires the recapture of 900 units with similar transactions that will absorb supply. The big picture, however, shows volatility for next week as transactions continue with intensity and the diffusion of sales has spread throughout the board, concludes Mr. Hatzidakis.

On the board

On the board now, Ethniki closed with losses of 5.05%, with Eurobank, Alpha Bank, Coca Cola, Titan and Mytilineo following with a drop that exceeded 4%. Over 3% were the losses in Viohalko, Piraeus, PPC and Lambda and over 2% in Saranti, IPTO, Hellenic Petroleum, Aegean, OPAP, ELHA and EYDAP.

The drop in PPA, Quest and Terna Energy exceeded 1%, with GEK Terna closing at -0.41%. On the other hand, Jumbo and OTE were the two titles in the FTSE 25 that closed positively, but with gains of 0.14% and 0.74% respectively.