Athens Stock Exchange In Pre-Elections Party with +10% On Speculations and “Secret Polls”

Posted by in Economy, Politics

Many wonder today, about the Athens Stock Exchange rallying with an amazing +9%. At 04:38 pm local time, that is 45 minutes before today’s session concludes the General Index is at 545,34 points and an increase of +9.16% with upwards tendency.

UPDATE: The session closed at 550.10 points with +10.12%. Banking sector went up +26%.

Some economic analysts, like Beta Securities,  claim that the ASE rally has to do “with optimism regarding the formation of a pro-bailout government.”

Eurobank Securities told Capital.gr that the ASE movement has to do “with the expectations regarding the elections results and that no change in the trend is expected”.  Piraeus Securities comment that “the market takes for granted an elections result in favor of the country’s remaining in the euro, even though it is rather premature to say something like that”.

Others, like Zerohedge claim that ASE’s soaring has to do with speculations that Alexis Tsipras, the leader of anti-bailout SYRIZA, is bluffing when it comes to ‘scrapping  the bailout’.

Alexis Tsipras himself told ANT1 TV on Thursday morning that he wants the internal devaluation to stop and that he is prepared to discuss all these issues with Greece’s eurozone counterparts.

“If they say ‘no’ to everything, it means that they want the end of the Greek people and the euro,” he said and warned that “if Greece’s doesn’t get its next loan instalment, the eurozone will collapse the next day.”

To the whole unexplained ASe movement, the rumors should be added, rumors claiming that conservative pro-bailout Nea Dimocratia is heading in ‘rolling polls’ with more than +3% difference from SYRIZA.

Real fact or wishful leakage in order to influence voters, just three days before the elections? On Sunday evening we will know.

 General Index Picture by Capital.gr as of 03:00 pm:

Just a few 24 hours before the crucial election on Sunday, the General Index of Athens Stock Exchange is rising above 500 units, boosted by the upward reaction of the banks, but also by the buying interest manifested in non-bank securities FTSE20.According to Beta Securities, moderate optimism regarding the formation of a pro-bailout government after the Sunday election has begun to settle among local investors, with the Greek bourse posting notable gains on Wednesday.

“However we anticipate a more volatile session today as foreign markets will evaluate the downgrade of Spain from Moody’s keeping at the same time a “stand by stance” as we reach to the day of the Greek elections” said Beta.

On the board, the General Index stands at 519.12 points up 3.64%. Moving upward from the opening of trading, was climbing 3.96% earlier.

The banking index which was earlier rising 9.47%, is climbing now 8.46% at 197.09 points.

So far the trading volume reaches 15.6 million units worth 12.3 million euros, while 69 stocks rise, 6 decline and  6 remain unchanged. (capital.gr)

 
PS What makes markets to support political parties that brought the country to this economic crisis and refrained from implementing the MoU is to me personally an unexplained phenomenon.