A painful stock market cycle of more than 13 years wants to leave behind the stock market the main indicator of which has returned to… April 2011, closing the “black” period of the crisis.
The total capitalization of the market has reached the levels of 100 billion euros, which had been “seen” since the beginning of November 2009, when the index was at 2,400 units.
At the same time, average daily trading activity soared to pre-Lehman Brothers levels, more than 15 years ago.
The average daily transaction value in the first quarter of 2024 was €146.046 million, up 32% compared to 2023.
The Greek stock market ranks seventh in terms of returns worldwide, among international markets.
The market also finds support in the good progress of fiscal figures and in the growth outlook of the Greek economy in 2024, which will be much higher than the European average.
In 2023 the Greek economy achieved a surprising surplus, reaching 1.9% of GDP, when in 2022 it was zero. GDP in 2023 increased to 220.3 billion compared to 206.6 billion in 2022 and 181.5 billion in 2021.
Exceeding the target regarding the primary surplus has a reflection in the fields:
First, in the faster reduction of the public debt. Based on the above result, the debt-to-GDP ratio was reduced from 172.7% in 2022 to 161.9% in 2023. Second, in creating a better starting point for achieving the 2024 fiscal targets, despite the international turmoil and slowdown of international and European growth rates. Thirdly, this result sends a strong signal to the international markets that the Greek economy is strengthening and growing beyond the targets, despite the difficulties and extraordinary events that the country has faced (natural disasters, international crises, double national elections, etc.)
At the same time, the upgrading of the Greek debt outlook from stable to positive by Standard & Poor’s, which places Greece in the anteroom of a new substantial upgrade in the next 12 months.
The new exit of Greece to the markets with a 30-year bond was added to the positive developments. with the markets giving a new strong vote of confidence in Greek bonds by offering 33 billion euros, while the interest rate was set at a level that certifies the investment grade and is directly compared to the corresponding interest rates of other Eurozone countries. The exit of the State to the markets last January had gathered high offers of 35 billion. In other words, in almost two months only Greek bonds attracted 68 billion euros, and if we add the offers for other Greek assets as well, we are talking about more than 100 billion. euros, in recent months.
The profitability of listed companies
The high profitability of listed companies supports stock valuations.
The results of the companies listed on the Athens Stock Exchange show an explosion of profitability and stock analysts estimate that they will achieve the highest profitability in 16 years, since 2007, when the profits were 11.3 billion euros.
In 2023 the profits of listed companies are expected to exceed the 10.4 billion euros achieved in 2022, while the financial ones are estimated to exceed 4 billion euros, the highest amount since 2008 (4.49 billion) and 2007 (5.42 billion euros).
The stream of corporate results now reinforces the estimate of exceeding last year’s historical performance in operating and net profitability of listed companies, according to Beta sec . So far, in 46% of the companies that have announced figures, the operating profits are 13.06 billion, the net profits are 10.07 billion, while the announced dividends are 3.5 billion. The distance to the historical highs is 820 million. for operating profits and 300 million for net profitability.
Apart from the performance records, the distribution of profitable companies is equally impressive: 94% of the companies that have announced are profitable, while only 6% – i.e. 4 companies – are loss making. And on this metric we are very close to an all-time high for the number of profitable companies across the ASE with a previous benchmark of 83% for the years 2003 and 2004.
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