Market Comment

Athens General Index increased yesterday, aided by the banking sector (up by 3.53%), ending at 1,552.20 up by 1.54% with a turnover of 113m euros. Most up stocks: EFG €4.46 (+5.44%), MPB €0.91 (+4.60%). Most down stocks: Jumbo €4.99 (-1.96%), HTO €7.95 (-1.85%). 10YR bond spread against German bunds 9.39 ppts. Market rise mainly triggered by the last week’s heavy losses. The market remains vulnerable to pressures, searching for any positive domestic catalysts.



ECO

ECB increases interest rates to 1.25%. Decision was taken unanimously for the benefit of all EU members.

- Identified upside risks inflation
- Increase will contribute in holding down inflationary expectations
- Elevated economic uncertainty
- Important for Banks to expand credit to economy
- Some bank’s need to raise capital urgently
- Increased oil prices constitute an upside risk
- Essential government achieve their budget targets
- ECB didn’t decide that rate rise was first of series
- Underlying momentum of economy remains positive
- ECB has encouraged Portugal to ask for support
- Monetary policy of ECB remains loose
- Welcome Irish government’s decision on Banks recapitalization



Greek Finance Minister George Papaconstantinou in Budapest for meeting of EU finance ministers



Corporate

OPAP

The Greek government will revise a proposed law on liberalising gambling after ruling party politicians complained it could turn the cash-strapped country into a vast casino, members of parliament said on Thursday.
The government last month tabled a draft bill to raise about 700 mln euros from new gaming licences and royalties this year, as part of its EU/IMF bailout. Source: Bloomberg



S&B

Secured a two-year loan to refinance a 20 million-euro bond, according to an e-mailed statement from the Athens-based company today. EFG Eurobank Ergasias SA arranged the deal, the statement said.





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