Stock Market Summary: Athens Exchange Closes Down Slightly
Market Overview:
The Athens Stock Exchange closed down slightly on August 9th, 2024, with the General Index ending the day at 1,382.46 points, down 0.85%.
The decline was driven by negative performance in sectors such as Jumbo and banks.
Despite the losses, the index managed to recoup some of its earlier losses and closed above its 200-day moving average.
Notable Events:
Jumbo’s sales guidance revision: The company announced a downward revision of its sales guidance for 2024, leading to a sharp decline in its share price.
Volatility and instability: The broader market remains characterized by high volatility and instability, with concerns over geopolitical tensions, recession, and interest rates.
Top Performers and Losers:
Highest gainers: Frigoglass (+2.91%), Orilina (+2.60%), Alpha Real Estate (+2.41%)
Highest losers: Jirakian (-5.90%), Nafpaktos (-5.77%), CPI (-5.63%)
Market Sentiment:
Despite the recent rebound, market sentiment remains cautious, with sellers returning to the fore.
The psychological level of 1,400 points remains a key resistance level.
International Market Update:
European markets closed slightly lower, while Wall Street opened higher.
* Investors remain focused on geopolitical concerns, recession risks, and interest rate movements.
Conclusion:
The Athens Stock Exchange experienced a modest decline on August 9th, driven by company-specific news and market volatility. Despite the losses, the index managed to close above its moving average.Greece‘s central bank raises interest rates to combat inflation
The Bank of Greece raised its key interest rate by 25 basis points to 2.75% on Thursday, in an attempt to curb inflation that has hit a 32-year high.
The central bank’s decision to tighten monetary policy comes as inflation in Greece accelerated to 10.3% in September, well above the European average of 9.9%.
The bank’s policy board said it expects inflation to remain high in the coming months, driven by energy and commodity prices. It also expressed concern about the impact of the war in Ukraine on the Greek economy.
The interest rate increase is the first by the central bank since July and is in line with expectations of market analysts.
Other central banks also raising rates:
The European Central Bank is expected to raise its key rate by 75 basis points later this month.
The US Federal Reserve has already raised its interest rates by 3.75 percentage points this year.
Impact on the Greek economy:
The interest rate increase is likely to have a cooling effect on economic growth, but it may also help to reduce inflation. The central bank expects the increase to reduce inflation by 0.5 percentage points in the fourth quarter.
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