Seven months complete with the stock market bouncing back within a range. And it has disappointed quite a few.
And consider that we have been in a bull market since November 2022.
Of course, especially in the summer, the international catalysts, mostly negative, did not leave much room for optimism, but not that domestically things were better either.
Double disappointment
Apart from the government’s apparent inaction to move forward with reforms, the beginning of the market’s frustration came with MSCI.
Not only did he not put the ASE on a watchlist for a possible upgrade, as had been cultivated by the government, but he postponed the issue from the new year.
In simpler terms… a possible upgrade, once a number of issues such as open sales are addressed, will come from 2026 at best.
And if…
S&P also postponed
Just over a month later, S&P DJI also postponed its long-awaited developed market upgrade.
It may have been presented differently by the market management, but the truth is that it was on the house’s watchlist from 2023.
But it had passed under our radar, in the shadow of the impending upgrade of Greek bonds to investment grade last summer.
And this year we were waiting for the upgrade. It didn’t come, apparently for the same reasons it didn’t come from MSCI.
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Catalysts are “approaching”.
With these and with these, the Greek market ends the summer in introversion and selective pursuits.
As for example in Ellaktor, in which it was rumored that a position is being built by a shipbuilder.
I cannot know the intentions regarding the management of the listed company’s large fund (e.g. in the port of Lavrio), but I do not rule out that there is a lot of fuss about nothing.
After all, the story with the MIG share is still fresh.
It’s not the only problem
In any case, however, returning to the catalysts, in the summer the foreigners ostentatiously turned their backs on us.
Because the government has “made sure” not to… “makes sure” that the rule of law operates in the country.
And she may not be interested in what Politico writes about how the Justice works in Greece, but that doesn’t mean that she is not interested in prospective investors.
Especially when it is reported by one of the most influential media in Europe.
Especially when he sees that the turnaround time for a contract is one of the longest in the entire western world.
I hope that the issue will be raised at the TIF press conference and that we will not be overwhelmed by headlines about pensions alone…
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A surprise person is coming
Let’s also hope that IOBE will wise up the government a bit and explain to them how important the rule of law is in a country that wants to call itself Western.
After all, as I learn, a surprise person is coming to the presidency of the institution. Where its “weight” will not only be decorative.
Nikos Vettas will remain scientific director, however.
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They changed their behavior
Bear in mind I guess the complaints about the expensive focus on the tourist areas – with the village salad at 12 or even 14 euros!
Understandably, tourists have also changed their consumer behavior. If not all, then quite a few.
And of course the changes were reflected in the … cash registers of retail and wholesale businesses.
2% – 3% sales decline
As reliable market sources told me, the decrease in the number of tourists visiting the restaurants – but also the increase in all inclusive – resulted in the cash & carry category, i.e. wholesale, having a sales decrease of around 2% – 3 %!
On the contrary, AirBnB, which is growing rapidly, has impressively increased the sales of supermarkets, i.e. retail!
It changes
For years retailers and suppliers have been “fighting” in the famous debates about the annual benefits of the latter to the former.
The first asked, the others did not give. In the end they found them, but with their faces downcast – in several cases!
Well, that’s changing now!
Offers and… Holy God
The terrifying influence that offers have on consumers has led the big market retailers (Sklavenitis, AB Vassilopoulos, Lidl, Metro) instead of asking for half or one unit of annual benefits every year, to ask for an increase in offers – “how many offers will I get?” give this year”.
And because the competition in the industry … “kills”, each chain adds an additional percentage, which it finances itself….
Who is cheaper?
If, for example, a supplier offers a 15% discount on a product, the chain adds an additional 5% or 10%, to make the lure even more impressive to the consumer.
The goal is to register in the consumer’s perception that “this one is cheaper than the other”.
This of course has the consequence of relieving any tense relations between the two sides and the direct price reductions, which the Ministry of Development was fighting to impose on the market – “one price, low price” – do not “pass” on consumers….
They might spare her
In the meantime, the threat of the Minister of Development, Mr. Takis Theodorikakos, that he is thinking of proceeding with a 30% reduction in annual benefits – as is currently the case in 7 non-food sectors – and in the food sectors, is a real possibility.
Whether it will be implemented will be seen from the evolution of inflation. Which is currently moving at negative levels.
Maybe the supermarket chains will finally spare her….
#Whats #watchlist #ASE #MIG #memories #Ellaktor #Achilles #heel #government #surprise #face #IOBE #butttumble #supermarkets #Economic #Postman
