The Greek stock market was the global champion of returns in the first half of 2023 with gains of 37.16% (based on Thursday’s close), hovering near 9-year highs. They are followed by the Nasdaq with a rise of 29.86%, the Russian MOEX index with a rise of 29.82% and the Nikkei with 27.36%. From the European markets, after the Greek stock market, there is the Italian stock market (+17.81%), the Spanish (+15.57%) and lower the German DAX-30 (+14.53%) and the French CAC- 40 (+12.96%). The world benchmark S&P 500 gained 14.51%, while the Dow Jones gained a smaller 2.94%.

The protagonist of the rise since the beginning of the year, from the high capitalization, is the share of Piraeus, Aegean Airlines, Ethniki, Jumbo, PPC, Alpha Bank and Viohalco.

The total market capitalization since the beginning of 2023 has increased by 20 billion euros, while the banking index shows a monthly increase of 59.18%.

The stock market rally in the first half of the year was based in large part on expectations of an investment grade recovery from late 2022 and this is the main driver driving the market to a strong rise and to levels seen since 2014, rise which is also accompanied by a significant increase in turnover, indicative of new inflows mainly from foreign portfolios.

Foreign investors have begun to put the Greek market on their radar, in view of the recovery of the investment grade. The return to investment grade (IG) will allow Greek stocks and bonds to return to the radar of more investors.

In addition, the investment grade “security” allows a much larger audience of investors to invest in Greek assets. This is due to the fact that in developed markets assets under management reach 52 trillion dollars, compared to only 6.3 trillion dollars. dollars in emerging markets.

The course of the Greek stock market during the pre-election period surprised even the most optimistic. Political risk has been downgraded with the market discounting the formation of a strong government, which was confirmed by last Sunday’s election.

The country’s finances are on track, with a return to primary surpluses as early as 2022, which supported the rise of Greek stocks.

The growth rates of the Greek economy also supported the stock market.

The upward cycle in which the Greek economy is located will continue, leading economists of international banks, rating agencies and think tanks estimate, even considering that it is relatively protected from the increase in interest rates internationally, while it will continue to grow in the coming years well above the eurozone average.

The results of listed companies continue to show that they are bullish. For the first quarter of the year, they continue the strong course of 2022.

Greek banks certify, with their results, that they are capital protected, with a healthy portfolio, improved net interest income and ultimately strong profitability, which is expected to continue throughout the year.

Achieving investment grade will be another positive catalyst for Greek banks, potentially leading to a reduction in their funding costs. The same applies to the disinvestment of the HFSF, demonstrating the full recovery of the banks since the years of the Greek financial crisis, as well as the increase in their free circulation. Finally, the dividend distribution will also act as a sign of their return to normalcy after the crisis years, thus attracting even greater investor focus.

The returns in the first half of the year

The biggest gainers in the first half of 2023 (based on Thursday’s close) are the shares of MIG (+155.83%), Piraeus (+107.23%), Cenergy (+102.65%) and Aegean Airlines (+102.27%).

On the contrary, the biggest fall was recorded by the titles of Frigoglass (-30.99%), Mermeren (-17.32%), Progressivetis (-16.36%) and Akrita (-15.93%).

Of the high capitalization shares, the biggest gains were recorded by the shares of: Piraeus (+107.23%), Aegean Airlines (+102.27%), Ethniki (+61.46%), Mytileneos (+59.21 %), Jumbo (+56.45%), PPC (+56.22%), Alpha Bank (+52.00%), Viohalco (+51.06%), Eurobank (+45, 02%) and Titan (+42.29%). Following are the titles of Autohellas (+35.4%), Ellaktor (+33.14%), GEK TERNA (+32.48%), Quest Participations (+32.06%), PPA (+30 .06%), Elvalhalcor (+26.23%), OPAP (+19.80%), Coca Cola HBC (+19.03%), Lamda (+15.38%), Sarantis ( +15.25%), Motor Oil (+7.42%), OTE (+6.92%), ELPE (+3.16%) and EYDAP (+0.15%). Only the share of Terna Energy (-0.49%) is down.