The Athens Stock Exchange closed at a new 17-year high on Friday, September 11, with the General Index rising 1.07% to 2,726.49 points as banking stocks led the advance and the index marked its eighth consecutive week of gains.
The index touched an intraday high of 2,732.32 points and a low of 2,704.60 points before settling at its best close since October 26, 2009, when it stood at 2,781.13 points. Over the five-day week, the market gained 0.93%, bringing its September advance to 1.84% and its year-to-date return to 28.57%.
Banks continued to drive the outperformance, with the sector index rising more than 2% to close at its highest level since November 2015. Shares of the country's systemic banks hit record highs, as did Optima Bank, which continued its strong run.
US inflation data and oil prices steer sentiment
International markets showed signs of easing tension as investors weighed fresh United States inflation data for August. The consumer price index rose 0.4% month on month, while annual inflation held steady at 3.4%. The figures are expected to weigh heavily on the Federal Reserve's decision at its meeting next week, on September 15 and 16, with a further interest rate increase seen as the most likely outcome.
At the same time, persistent geopolitical tensions in the Middle East and the Persian Gulf pushed energy prices higher, with Brent crude climbing toward $110 a barrel and US benchmark WTI crossing above $100. Rising bond yields added to concerns about a renewed bout of inflationary pressure, prompting a broad risk-off move in global markets. Sentiment later improved after a modest pullback in oil, with WTI easing to $99 and Brent to $104.
In the domestic market, despite a cautious mood tied to energy costs, capital inflows into the banking sector and corporate catalysts are expected to keep supporting the index as it pushes toward further highs.
Star Bulk listing and Eurobank rating move
Investor attention is also on the completion of the public offering for Star Bulk's listing on the Main Market of Euronext Athens, which aims to raise up to 112.2 million euros. According to reports, demand for the offering was oversubscribed, confirming strong investor interest. Trading in the shipping company's shares is set to begin on Wednesday, September 16.
Eurobank was also in focus after Morningstar DBRS revised the trend on the bank's long-term critical obligations rating to positive from stable, while confirming its short-term rating at R-1 (low). The move follows a recent positive revision to the trend on Greece's sovereign credit rating and does not reflect any change in Eurobank's standalone credit profile, with the bank's issuer ratings and intrinsic assessment remaining unchanged at BBB (high).
Busy corporate and ratings agenda ahead
Aegean Airlines is due to report its first-half results on Monday, September 14, after the Athens Stock Exchange session closes. GEK Terna, Qualco, Premia Properties and Performance Technologies are scheduled to publish results on Tuesday, September 15, followed by Lamda Development on Wednesday, September 16. Profile and Europe Holdings report on Thursday, September 17, while Ellaktor and Kekrops are due to release results on Friday, September 18.
That same Friday, investor focus will shift to credit rating agencies. Moody's is set to issue its verdict, having currently rated Greece at Baa3 with a stable outlook. Scope Ratings will also deliver an assessment the same day; it currently rates the Greek economy at BBB with a positive outlook, leaving open the possibility of a further upgrade.
On Monday, September 21, the upgrade of the Athens Stock Exchange from advanced emerging market to developed market status by FTSE Russell and Stoxx takes effect, alongside the semi-annual review of the FTSE All World index. The transition marks a structural change for the domestic market, though its real impact on trading volumes is expected to show up earlier, as the major portfolio rebalancing and related inflows and outflows from passive funds will take place at the close of Friday's session on September 18.
