With a marginal drop of 0.07%, the stock market closed the week ending, which was characterized by high volatility. At the beginning of the week, the market sank to 1,210 points as the market was “burned” by the news of the investment grade yield from the house DBRS, with investors being negatively affected by the uncertainty about the economic consequences of natural disasters.

In Thursday’s session there was an arrest of the downward trends to be followed by Friday’s strong rise (+2.01%), which was also accompanied by a large increase in turnover.

After the upgrade by DBRS, Eurobank Equities estimates that the AXA will benefit from the other upgrades to come (Fitch, S&P, Moody’s), in an environment in which the valuations of Greek shares remain very attractive.

In fact, he estimates that the rise of the AXA has not been exhausted, especially due to the reduction in the cost of capital, since a 1% reduction in the cost of capital would translate into a 13% increase in the prices of these shares.

Given the positive domestic medium-term outlook, the brokerage argues that investors are selectively adding exposure during international corrections. Her preferred pick list is a mix of quality stocks with high profitability and cash returns (OPAP, Jumbo, Mytileneos) further complemented by higher beta stocks at low valuations, namely PPC and Piraeus Bank.

According to Piraeus Securities, the upgrade is a key catalyst for the Greek stock market for the following reasons:

a) Valuations: Lower cost of capital through lower country risk premium and corporate borrowing costs together with better medium and long-term growth prospects will support valuations in the current high interest rate environment;

b) Investment flows: The pool of global capital investing in Greek financial assets will increase, given the institutional restrictions on major investment categories that do not allow them to invest in non-investment grade markets,

c) Classification of the market: It will pave the way for the upgrade of the ASE to the developed status.

The stock exchange, based on the current target prices in the list of shares monitored by the stock exchange and representing approximately 80% of the capitalization of A.A. and in which it has already incorporated the impact of the lower cost of capital resulting from investment grade, the upside is 30% on average.

The stocks with the greatest benefit from the upgrade are the banks, PPC, Mytileneos, GEK TERNA and HEXA.

General Price Index closed the week at 1,258.58 points, compared to 1,259.50 points the previous week, marking a weekly marginal drop of 0.07%, since the beginning of September it has fallen to a percentage of 4.11%, while since the beginning of 2023 it has recorded gains 35.36%.

The FTSE/ASE 25 large-cap index ended the week up 0.30%, while it has gained 36.02% since the beginning of the year.

The FTSE MID ended the week down 0.24% and since the start of 2023 is up 45.65%.

The banking index closed the week down 0.97%, while since the beginning of the year it has gained 53.50%.

The total value of transactions in this week’s sessions was 629.425 million euros, while the average daily value of transactions was 125.885 million euros from 94.072 million euros the previous week.

The total market capitalization this week increased by 35 million euros and reached 85.085 billion euros, while since the beginning of the year it has increased by 19.22 billion euros.