You are here

Great returns in the CSE

29/09/2009 07:57
The domestic stock market goes through one of the best months in the past few years, influenced by the improvement of the global climate and the sharp increase of Marfin stock. In less than a month, Marfin climbed 31% or €600 million in capitalization, pushing this year’s gains up to 62%. The share absorbed almost half of the total turnover of €120 million in the CSE in September and was one of the most marketable titles in Athens.

Marfin’s good performance is linked to the increase in its TP by UBS and Citigroup, which estimate that the profits from the banking activities will be higher than expected based on the improvement of the bank’s results in the second quarter. Its profitability has been also boosted by the improvement of the banking climate, which will strengthen the bank’s income from commissions.

The positive approach of UBS and Citigroup to Marfin is mostly attributable to the bank’s negative performance in relation to other European and Greek banks. Its stock was 70% lower than the historic high of October 2007 compared to 50% that the other banks were.

Marfin was not the only bank that achieved gains in September. Bank of Cyprus managed to enjoy gains of 12% in September, pushing the accumulated profits for 2009 up to 98%, while Hellenic Bank gains 19% this month and 39% since early 2009.

It is noted that the banks attracted almost all investors’ interest in the CSE (€109 million).

Demetra and Logicom record significant gains too, while Ocean Tankers, Sea Star, CTO and Petrolina suffer losses. It is worth noting that Petrolina has been imposed a fine of €12.6 million by the Commission for the Protection of Competition.

Although the international analysts remain positive for the course of the Cypriot banks, there are still doubts in the domestic market on the duration of the stock market rally due to the downward trend of the island’s economy.

“In our opinion, we should not exclude the correction of the global and domestic markets after the rally since March, although the timing is not certain. We believe that a correction should not be excluded before a new dynamic pops up. We are still alarmed for the future gains in the stock markets before the correction since it seems that there is no distinction among the stock markets, despite the differences in the countries’ economic data”, Sharelink stated in its latest weekly note to customers.