Analysts are now focusing on whether the Athens Stock Exchange will be able to continue its course to new multi-year highs, even approaching 1,550-1,600 points, as they see the short-term trend of the Greek market remaining on an upward trajectory, against the backdrop of increased international uncertainty.
Besides, the General Index has gained more than +3.7% in the first weeks of 2025. In fact, out of the total of 11 sessions of the year, it has been above 1,500 points in seven of them, which is the highest level since April 2011 or the highest level of the last 165 months.
The main pillar of the positive start to 2025 is undoubtedly based on bank shares. The sectoral index is above 1,400 points for the first time since November 2015, while a mini-rally of +10.1% is underway this year.
Analysts attribute the stock market’s positive performance to at least 3+1 factors, along with the stable macroeconomic-political environment of the country.
- Resilient Profitability: Analysts’ estimates for 2025 indicate that the profitability of listed companies will be at the same or even higher levels compared to the completely satisfactory 2024, which will probably be the best year since 2007.
- Attractive Valuations: Sustainable profitability “maintains” the valuation ratios of Greek stocks at particularly attractive levels. Despite the rise in recent weeks, most large-cap stocks are still trading at a discount to their peers, with single-digit P/E (price-earnings) ratios. The same is true of dozens of mid- and small-cap stocks.
- Dividend boom: Analysts predict a large increase in dividends by 2025, the amount of which could reach or exceed 5 billion euros.
- Deals: Just like last year, business deals, such as the recent of the Thessaloniki Port Authority, are a strong asset for the course of the Greek market this year.
- Corporate Transactions: The combination of all of the above increases the interest in raising capital through the Athens Stock Exchange.
However, we are not alone in this world, so the Athens Stock Exchange is not in a position to focus exclusively on its domestic encouraging developments, which constitute a sufficient condition to see the Greek market moving upwards for the fifth consecutive year.
There is also the international factor, which lately seems quite … confused. And this keeps investors on high alert, as analyst Petros Steriotis explained.
More specifically, concern exists on how things will develop in the US, what the scope of trade tariffs will be, how inflation will move, and how many interest rate cuts central banks will make.
