16/10/2015 08:51
The resumption of trading of the shares of the bank of Cyprus last December, has so far failed to revive the Cyprus Stock Exchange both in terms of value and activity.
The hopes created by the return of the island's largest corporation to the CSE proved to be short-lived as investors continue to show limited interest in dealing with CSE stocks.
The lack of liquidity in the market which prevails since the bail-in occurred, seems to be a detriment to the return of investors.
The still on-going general problems in the economy and the banks in specific also make investors hesitant to return to the market.
Since BOCY shares resumed trading on December 16, 2014 the CSE general index has shed 14,6% declining from 86,78 to 74,08.
The price of the BOCY shares closed on that day at €0,18 compared to €0,24 which was the price at which the issue of €1 bn was done mainly to foreign investors.
It currently trades at €0,168 which is the lowest level since then, some 6,7% lower than the December 16, 2014 price and 30% below the new issue price.
The price of the Hellenic bank is about 25% lower since then.
At the same time, CSE volume although significantly increased compared to the period during which BOCY was not trading, remains at particularly low levels.
The average daily volume in 2015 stands at about €618K compared to €308K for the entire 2014 and €267K in 2013 which was by far the worst year volume-wise in the history of the CSE.
Transactions in Bank of Cyprus and Laiki bank shares constituted up to March 2013, about 75% of the total CSE volume.
The closure of Laiki and the suspension of trading of the BOCY shares effectively wiped out CSE volume.
The resumption of BOCY trading created hopes for a resurgence in investors' interest but up to now this was not materialised at least at the anticipated magnitude.
As shown in the table for which selected years are used, the September 2015 CSE volume was actually the lowest since BOCY's return.
The hopes created by the return of the island's largest corporation to the CSE proved to be short-lived as investors continue to show limited interest in dealing with CSE stocks.
The lack of liquidity in the market which prevails since the bail-in occurred, seems to be a detriment to the return of investors.
The still on-going general problems in the economy and the banks in specific also make investors hesitant to return to the market.
Since BOCY shares resumed trading on December 16, 2014 the CSE general index has shed 14,6% declining from 86,78 to 74,08.
The price of the BOCY shares closed on that day at €0,18 compared to €0,24 which was the price at which the issue of €1 bn was done mainly to foreign investors.It currently trades at €0,168 which is the lowest level since then, some 6,7% lower than the December 16, 2014 price and 30% below the new issue price.
The price of the Hellenic bank is about 25% lower since then.
At the same time, CSE volume although significantly increased compared to the period during which BOCY was not trading, remains at particularly low levels.
The average daily volume in 2015 stands at about €618K compared to €308K for the entire 2014 and €267K in 2013 which was by far the worst year volume-wise in the history of the CSE.
Transactions in Bank of Cyprus and Laiki bank shares constituted up to March 2013, about 75% of the total CSE volume.
The closure of Laiki and the suspension of trading of the BOCY shares effectively wiped out CSE volume.
The resumption of BOCY trading created hopes for a resurgence in investors' interest but up to now this was not materialised at least at the anticipated magnitude.
As shown in the table for which selected years are used, the September 2015 CSE volume was actually the lowest since BOCY's return.
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