The Greek stock market became the world’s top performer in the first five months of the year with a 31.07% gain. They are followed by the Russian MOEX index (+26.16%), Nasdaq (+23.59%) and Nikkei (+18.37%).

The Greek stock market recorded a two-fold increase compared to the main European stock markets. The German DAX-30 index added 12.50%, the Italian index – 9.89%, the French CAC-40 – 9.65%, while the British FTSE-100 index fell slightly by 0.08%. The underlying S&P 500 rose 8.86%, while the Dow Jones fell slightly by 0.72%.

May closed with a high growth of 12.31% and became the “hottest” month of 2023 (January +10.%, February +10.41%, March -6.61%, April +2.89%), and from the beginning of 2023, the increase was 31.07%. are recorded.

The main protagonist of the high-cap year-to-date gains is Piraeus, which has nearly doubled in share price, followed by Aegean Airlines, Ethniki and PPC.

Total market capitalization increased by 7.3 billion euros in May, while it increased by 16.88 billion euros since the beginning of the year. The banking index showed a monthly growth of 12.50%, while since the beginning of the year it recorded an increase of 49.6%.

May’s results were explosive after the surprise election results with the Hellenic Stock Exchange. world champion in 5 months, refuting the stock market saying: “Sell ​​in May and go“, i.e. “Sell in May and go on vacation.”

The Athens Stock Exchange performed best among the 38 investment assets tracked by Deutsche Bank in May.

Excess performance in elections

Analysts at Deutsche Bank note that the elections led to a significant excess of the dynamics of Greek assets, since in addition to the double-digit growth of the stock market, Greek government bonds looked better than others. The spread of 10-year bonds against the corresponding German bonds narrowed by 38 basis points to 150 basis points. And this is important, since most of the international assets recorded losses in May. In dollar terms, the US NASDAQ ranks second in May after AXA. The Nikkei, Russia’s MOEX, Brazil’s Bovespa and the US S&P 500 follow with more than 5% gains.

Morgan Stanley considers the Greek market the best choice among the emerging markets in Europe. Morgan Stanley anticipates the emergence of investment grade and explains that stock markets outperformed the emerging markets index by 22% in about eight months prior to being upgraded to investment grade.

Greek stock valuations remain low, according to Morgan Stanley. The domestic market is trading at a P/E ratio (price to earnings ratio) of 7.7 times over the next twelve months, below the long-term average. The dividend yield ratio has retreated from its recent high to 4.9% and remains above average. The ratio of P/BV to book value is higher than in the past, which is fully justified by the improving market conditions and earnings dynamics.

The upward movement of the market has been going on since the end of September last year, when the main stock market index recorded an increase of more than 50%.

Technically, the breakdown of the strong resistance of 1150 units, which has been going on since 2014, is especially positive.

In the broader technical picture, upside potential comes from a break of 910 units, with the 1400 zone being the first medium-term main target.

1200 units is now the starting point for the next General Index meetings and an upward chart target of 1380-1400 units.

Return in May

The biggest growth in May was demonstrated by the following shares: MIG (+53.94%), Avax (+30.65%), Q&R (+29.82%) and Piraeus (+27.54%).

On the contrary, the biggest losses were suffered by the titles: Frigoglass (-17.36%), Mermeren (-17.07%), Kyriakoulis (-14.41%) and Reds (-7.33%).

The largest growth in May due to high capitalization was shown by shares: Piraeus (+27.54%), Aegean Airlines (+25.50%), PPC (+24.53%), National (+22.49%), Alpha Bank (+22.49%). 21.65%), Viohalco (+20.83%), Quest Holdings (+17.64%), Eurobank (+15.87%), Mytileneos (+13.38%), Autohellas (+13.05% ), Ellaktor (+12.25%), Motor Oil (+11.46%), Lamda (+10.57%) and ELPE (+10.51%).

Shares are as follows: Titan (+9.93%), GEK TERNA (+9.19%), OTE (+7.99%), Elvalhalcor (+7.35%), PPA (+5.49%), Jumbo (+3.24%), OPAP. (+2.11%), Sarantis (+1.92%), Terna Energy (+1.72%), Coca Cola HBC (+0.55%). Only the share of EYDAP decreased slightly (-0.15%).

Yields for the first 5 months of 2023

The largest growth in the five months from January to May was shown by the shares: MIG (+220.10%), Piraeus (+92.63%), Klukinas-Lapas (+91.80%) and Aegean Airlines (+89.04%) .

On the contrary, the names that lost the most were Frigoglass (-41.52%), Mermeren (-26.41%), Mylos Kepenou (-14.17%) and Prodea (-11.49%).

The largest growth in the five months of January-May due to high capitalization was recorded for shares: Piraeus (+91.93%), Aegean Airlines (+88.85%), Ethniki (+54.79%), PPC (+51 .03%). %), Mytileneos (+45.22%), Viohalco (+44.82%), Autohellas (+38.80%), Alpha Bank (+38.50%), Eurobank (+38.39%), Titan (+37.65%), Jumbo (+35.79%), Ellactor (+30.86%), PPA (+26.58%), Quest (+24.63%), GEK TERNA (+24, 22%), Coca Cola HBC (+22.35%), OPAP (+20.79%), Sarantis (+14.33%), Elvalhalcor (+11.73%) and motor oil (+10.54% ). This is followed by shares: Lamda (+9.06%), ELPE (+5.27%). Shares, on the contrary, fell: EYDAP (-3.97%), OTE (-1.85%) and Terna Energy (-1.18%).

Source: RES-IPE