Profit taking operations dominate the Athens stock exchange on Monday, following the recent gains.
Although many analysts feared that March would be difficult on the on Athens stock exchange, the situation is different with capital flows from abroad not only offering valuable support amidst international challenges, but also leading the Greek stock market to levels that had not been seen since February 2011, that is, for at least 14 years or for… 169 months! In a total of nine sessions in March, the General Index has registered a record of six positive and three negative closes, with the cumulative increase for the period exceeding +5%.
At the same time, during this period, the market achieved its best session of 2025 (+2.58% on 12/3), while it saw the average daily turnover exceeding 200 million euros. It is no coincidence that even the three falling sessions had maximum losses of -0.35% (on the March 4 session). Where is all this euphoria attributed?
Moody’s recent upgrade certainly plays a key role, given that markets tend to discount such developments earlier. Beyond that, however, the recovery of investment grade from the “strict” US rating agency is probably the icing on the cake – and not the cake itself. And this is because buyers have several reasons to give a vote of confidence… strong profitability and generous dividends to successive business deals and attractive valuations.
“Stable – and not coincidental – profitability improves investment visibility. Thus, shareholders, active and potential, reduce the risk premium of listed companies, as the strengthening of the capital base from the profits of the year on the one hand creates conditions capable of achieving high dividend yields without compressing valuations, on the other hand increases the sense of security of shareholders in case of ‘rainy days’ in the future,” analyst Petros Steriotis explained.
Of course, the “protagonist” is the banking sector. The numbers are impressive: +11.8% in March, +29.8% in 2024, +38.5% in 12 months, +100% in 2 years, +193% in 3 years and +405% in 5 years.
The series of profitable years, the optimistic guidance for 2025, the business plans for the next three/four years, the satisfactory capital base and the high dividends (up to 50% payout ratio for this year) compose a positive cocktail, which comes to dispel any questions surrounding the looming reduction in interest rate margins.
So, somehow, before the first quarter of the year is even complete, the General Index is close to 1,700 points, recording a performance of more than +15% for this year. Certainly, the ongoing rally raises thoughts about… profit taking, especially if we take into account the unpredictable nature of foreign markets.
The agenda of the week
Regarding the current week’s agenda, the fundamental figures of listed companies for the fiscal year 2024 continue to be high on the list of investment interest, with analysts not ruling out the possibility of approaching or even exceeding the psychological threshold of 11 billion euros, which would lead to the best annual performance since 2007.
Today, Aegean’s management will publish the performance of the previous 12 months, followed by Alpha Trust management on Tuesday. On Wednesday (19/3) OPAP’s update is scheduled as well as Lavipharm’s flash note. It is recalled that the deadline for the publication of the financial figures for 2024 expires at the end of April.
This week, the Extraordinary General Meeting of Jumbo shareholders will also take place, and they will be asked to approve the distribution of an extraordinary dividend of 63 million euros, or 0.47 euros/share (gross amount). The relevant decision will be made on Wednesday, March 19.
