The Athens Stock Exchange's General Index jumped 1.64% on Monday to close at 2,611.77 points, its highest level in 17 years, as global markets rallied on growing hopes of a de-escalation in Middle East tensions.
The rally was driven largely by expectations of a possible agreement between the United States and Iran, after Donald Trump cancelled a planned attack on the country, according to the report.
The high-capitalization index ended the session up 1.59%. The Mid Cap index, which came under pressure during trading, still closed in positive territory at 0.16%. The banking index jumped 2.22%, with bank shares acting as the main fuel for the day's gains.
The biggest gainers on the board were Piraeus Bank, up 3.44%, National Bank of Greece, up 2.42%, Alpha Bank, up 2.32%, Metlen, up 2.31%, and construction group Aktor, up 4.61%.
A second straight session of gains
The advance followed a session on Friday in which the General Index closed marginally lower, down 0.08% at 2,569.75 points, though it still posted a weekly gain of 3.1%. Trading value surged to 394 million euros, well above the 100-day moving average of 312 million euros. July closed with an overall gain of 4.5%.
Corporate earnings season continues this week. Bank of Cyprus is due to report results on Tuesday before the market opens, while Cenergy Holdings will publish its figures after the close.
Among other listed companies, the Public Power Corporation, known as DEH, announced an agreement to acquire a portfolio of renewable energy projects with 277.3 megawatts of capacity in Poland from EDP Renewables, marking its entry into the Polish market.
Alpha Bank announced the start of a share buyback program after receiving approval from the Single Supervisory Mechanism and decisions by its general assembly and board of directors. The program covers up to 205 million shares, equivalent to 9.1% of its share capital, with a maximum spend of 282.4 million euros.
Piraeus Bank shares began trading on Monday without the right to a capital return of 0.40 euros per share, corresponding to a yield of about 4%.
Deutsche Bank and Morgan Stanley back Greek market
The strong performance of the Greek market was also highlighted in Deutsche Bank's latest monthly report, which said Euronext Athens remains one of the strongest destinations for investors in 2026, confirming that its momentum is not a temporary phenomenon. According to the report, the General Index rose 5.2% in July alone, placing it among the top-performing markets in Europe for the month. On an annual basis, gains stand at 23.8%, well above most major European exchanges.
The report also singled out the European banking sector, which gained 6.4% in July and has risen 24.2% since the start of the year, one of the top sector indices in Europe, a trend that has supported Greek bank shares, which continue to drive the Athens exchange's rise.
Morgan Stanley also referenced the performance of Greek banks in a new report, noting that this year's earnings season confirmed European banks continue to surprise positively, while the firm believes Greek banking groups remain in a privileged position. Morgan Stanley said it maintains a positive stance on the sector overall and that Greek banks continue to combine high profitability, a strong capital position and attractive valuations.
Morgan Stanley set a price target of 11.50 euros for Piraeus Bank, 4.90 euros for Alpha Bank, 4.90 euros for Eurobank and 17.20 euros for the National Bank of Greece.
Asian markets fall, Europe and Wall Street rise
Asia's main stock indices began the week in negative territory, as investors weighed the latest geopolitical developments in the Middle East, a sharp drop in oil prices and growing doubts about whether massive investment in artificial intelligence will soon translate into higher profitability. Japan's Nikkei 225 fell 1.12%, while the broader Topix index lost around 1.21%. The pressure was even greater in South Korea, where the Kospi dropped 5.07%, though the small-cap Kosdaq index moved in the opposite direction, gaining 2.28%. In Australia, the benchmark S&P/ASX 200 rose 0.27%.
By contrast, European markets opened the month higher. The pan-European Stoxx 600 index rose 0.25%, with most sector indices and major European exchanges trading in positive territory. Travel and leisure stocks led the gains, up 1.79%, followed by construction, up 1.6%, and industrial goods, up 1.2%. Oil and gas shares fell 1.79%.
Among major national indices, Germany's DAX gained more than 1.46%, France's CAC 40 rose 1.21%, Italy's FTSE MIB gained 0.88%, while Britain's FTSE 100 slipped 0.19%.
Wall Street's main indices also opened higher after Donald Trump announced he had cancelled planned attacks against Iran, pushing oil prices lower. The Dow Jones rose 1.15% to trade at 53,086 points, the S&P 500 gained 0.40% to 7,519 points, and the technology-heavy Nasdaq rose 0.18% to 25,420 points.
