Eurobank

The decline continued at the Greek bourse on Wednesday, though not as strongly as on Tuesday, with the benchmark yielding more ground. The banks index remained on a southbound course for a sixth consecutive session, underperforming the market and showing that the absence of initiatives or positive news on the domestic front will allow the momentum of the year's first quarter to slip.

The imported concerns, such as the losses at the start of the Wall Street session, the growing tension in domestic politics and the recent fatigue of buyers led Greek stocks to a significant decline on Tuesday after the four-day recess.

Greece's four major banks have until the end of the month to submit their capital plans for the next three years to the Single Supervisory Mechanism (SSM) of the European Central Bank, based on which the request for the distribution of 2023 dividends of 10-30% will be assessed.

Stocks continued their decline on Wednesday at the Greek stock market, led by banks, which had traders cashing in some of the last few weeks' gains. Turnover was significantly reduced compared to Tuesday. 

A short trading week of just three days has started at the Greek stock market with a moderate decline for the benchmark and the majority of stocks, though a number of blue chips responded to pressure and rebounded. Turnover also showed signs of significant recovery on Tuesday, after one more long weekend and ahead of another.

Greece's four systemic banks will distribute this year approximately 840 million euros in dividends, out of a total of €3.6 billion, which were the net profits of the previous year.

Greek banks estimate that interest rates will remain high, namely between 2.7% and 3% in 2024-2026, keeping interest income at high levels for the following years as well.

Interest income increased by 51% to 8.1 billion euros in 2023, contributing the bulk of organic revenue of €10.4 billion.

The prospect of interest rate cuts in the US and Europe boosted markets in the eurozone and sent the Greek bourse benchmark higher on Thursday. Despite receiving little support from the usual suspects - i.e. the banks - the main index and that of blue chips gained more ground, confirming that despite the temporary cashing-in efforts, traders have a bullish attitude for the long term.

Moody's decision against upgrading the Greek rating, and the JP Morgan report that Greece is not yet ready to join the developed markets poured cold water on expectation at the bourse in previous days and led to a significant decline in prices on Tuesday, at the opening of the stock market after the long weekend. Banks fared better thanks to the resilience of Eurobank and National. 

The March triple witching sent the bourse's turnover soaring to over 350 million euros on Friday, while the benchmark grabbed some more ground, all but offsetting the major losses it had suffered on Monday. That meant the week closed with small losses, for the first time after seven weeks of growth.