Despite the August correction (-1.72%), the Greek stock market since the beginning of the year has carried out a “championship” rally, registering at the end of the seven-month period the third best performance worldwide. It recorded gains of 41.16%, winning the “bronze” medal in the ranking of major international markets. First in the ranking was the Russian market with gains of 49.85%, followed by the Turkish market with an increase of 43.72%.

The Greek stock market, in the seven months, outperformed the Wall Street indices (Nasdaq +34.09%, S&P +17.40%, Dow Jones +4.75%), but also the largest European stock markets (Italy +21.62% , Spain +15.52%, Germany +14.53%, France +13.02%, Britain -0.17%). The total capitalization of listed companies since the beginning of the year has increased by 22.429 billion euros, while the capitalization of the four shares of systemic banks, since the beginning of the year, has increased by 7.9 billion euros.

The banking index in the seven-month period records gains of 65.97%, while the index of high capitalization strengthened by 41.33%. Among the high capitalization shares, the “champions” of returns were the shares of Aegean Airlines, Piraeus, Mytileneos, Jumbo, Viohalco, Ethniki, Alpha Bank, PPC, Titan and Eurobank. Despite the strong upward movement, according to international investment houses, the valuations of the Greek stock market are still attractive.

JP Morgan reiterates that despite the market rally, it believes the Greek market has room for upside data: 1. Forward 12-month P/E at 6% at a 42% discount to the emerging market index, 2. Strong earnings growth profile this year and a favorable growth path, with continued economic reforms supported by the European Recovery Fund and boosted by the ND victory in the elections, 3. The country will maintain GDP growth above EU performance, remaining resilient to global recession risks , 4. The IG upgrade could come this year and be a boost to the mood.

The MSCI Greece index trades at attractive levels compared to the 5-year average and based on P/E (6x) and P/BV (0.7x), with a discount of 49% and 45% compared to emerging markets internationally and against the emerging market region of Europe, the Middle East and Africa. Morgan Stanley points out that Greece is still cheap as it trades at just 7.5 times its earnings and with a dividend yield of almost 4.7%. HSBC notes that Greek PE is just 7.8x versus 13.2x for the emerging market average and 12.6x for Europe.

The seven-month returns

Since the beginning of the year, the biggest increase was recorded by the shares: MIG +157.09%, Aegean +149.53%, Cenergy +134.11% and Mathios +131.75%. On the contrary, the biggest decline was registered by the following stocks: Foodlink -22.83%, Prodea -19.54%, Terna Energy -18.55% and Progressive -10.91%. Of the high capitalization shares, in the seven months January-August, the most profits were presented by the shares of Aegean +149.53%, Piraeus +121.84%, Mytileneos +84.43%, Jumbo +78.47% , Viohalco +75.03%, Ethniki +67.44%, Alpha Bank +55.60%, PPC +54.08%, Titan +52.40%, Eurobank +51.66%, of Ellactor +43.71%, PPA +39.24%, Autohellas +36.68%, Elvalhalcor +36.11%, Quest +33.97% and GEK TERNA +23.49%. Following are the shares of Sarantis +19.26%, Coca Cola +18.76%, OPAP +17.76%, Lamda +15.56%, ELPE +8.96% and Motor Oil +7. 70% On the contrary, the shares of Terna Energy -18.55%, OTE -5.41% and EYDAP -2.94% closed the seven-month period with a fall.

August returns

The biggest increase in August was recorded by the shares: Frigoglass +64.55%, Akritas +29.31%, Klukinas-Lappas +18.42% and Unibios +14.49%. Conversely, the biggest decline was recorded by the stocks: Foodlink -39 ,10%, Piraeus -9.12%, Elastron -8.24% and Elinoil -6.50%. Of the high capitalization stocks, the biggest gains were made by: Viohalco +8.85%, Jumbo +5.79%, Autohellas +3.81%, Agean +3.12%, Motor Oil +2.53%, Mytilineos +2.46% and Eurobank +1.91%. On the contrary, the largest decline was recorded by the stocks: Piraeus -9.12%, PPC -6.05%, GEK TERNA -5.74%, OTE -4.30%, Terna Energy -4.10%, Lamda -3.98 % and EYDAP -3.23%.