Athens Stock Exchange: 1,360 units Too hard to die

Residents of the Jerusalem Stock Exchange, i.e. those who know things and situations in a small circle, are not surprised by this reaction. Domestic capital market Iran's missile attack on Israel. Over time, the Athens stock market reacts to positive and negative news with hyperbole and impulse.

So General code Already “exhausted” by failed attempts to regain access to this year's high of 1,434 units, the rapid retreat. 1.360, resulting in a slight downward split at the end of last Tuesday's session. Yesterday's close was 1,365.48, showing that 1,360 is very difficult to break firmly. This could lead to further pullbacks and attest to the validation of a bullish situation. However, even a positive scenario that would require an upside break of 1,425 units and lead to 1,500 units is remote today.

The speed at which stock prices have fallen is due to several factors. First, concerns about rising oil prices will trigger a double jeopardy. On the one hand, the risk of rising energy costs, what this means for corporate accounting statements, and on the other, the sustainability risk inflammation This will delay interest rate cuts by central banks and cash spending by commercial banks. An important reason is the effort to protect the substantial gains made by investors over the past two years.

So it makes sense that negative thoughts and reflections dominate.

Will banks succeed in pursuing their business plans? Can they raise the credit expansion rates needed? Can they lower their borrowing costs from their bond issues?

Of course, as far as banks are concerned, the figures for Q1 of '24, according to stock market analysts' estimates, are particularly positive, and they don't expect a significant change in “hands-on,” at least until Q2. The turnover of companies in the construction sector has risen by at least 30%, with no change in trend in sight.

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That is, cool recording and analysis of new data from development Middle East, does not justify this turmoil of the Athens stock market. Because for most of the listed companies, neither their profit nor their dividend nor their growth is disturbed at the moment.

However, the lack of depth in the market has allowed the “faster and stronger players” to create an intense environment of insecurity and fear. The decline in index-weighted stocks, driven by selling of strong funds and withdrawal of buying sentiment in mid- and small-cap stocks, was vulnerable to stock market hangovers and changes in investment sentiment.

Therefore, if investors believe that humanity is not headed for world war, that there is no change in fundamental economic data, that the growth outlook for the Greek economy is not reversed, and that stock market valuations are realistic, they have no reason to abandon the long bull rally of the Athens stock market, but to speculate on volatility. Don't try.

But if they still think that the war in the Middle East is destabilizing the whole World economyInterest rate cuts are indicated on the calendar and if the Greek economy is negatively affected by international developments or domestic finances do not perform as they show, he may stay out of the market.

After all, what options does a disorganized investor have when the market turns and gives a sell signal? The first and easiest option is for the investor to liquidate his position by selling the shares and mutual fund units he owns and thereby preserve his profit. Stay out of the market until conditions change.

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The second option is more serious. The investor not only liquidates his portfolio but also invests in dips through various equity products. This is how he exploits the real fear of other investors.

The main point, then, is that the 1360 units to the general index of the Athens Stock Exchange. Staying above this level keeps hope of a reversal reaction alive, retrieving previous highs. Conversely, a downward split can lead to more discomfort and further collapse.

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