The Athens Stock Exchange, which continues to perform lower this year in relation to European markets (+ 8% vs. + 20%), is being tested again after the appearance of the "Omicron" mutation, which adds an additional source of concern, given the early indications. for higher transferability than "Delta", according to Eurobank Equities estimates. The crucial question is whether or not existing vaccines are effective against the new mutation, which will take two weeks to increase market volatility.
The cost to the economy
According to the stock exchange, despite the assurances of government officials that a complete closure of the economy should be ruled out, however, according to its calculations, a complete two-week lockdown would cost the Greek economy 1-1.2 billion euros, which translates into a slowdown of 0.6% - 0.7% of GDP.
On the other hand, as it estimates, with growth at 7% - 8% in 2021 and 4.5% - 5% in 2022, the general framework seems quite supportive for Greek stocks, despite the well-known international challenges. According to Eurobank Equities, Greek stocks are trading at a 25-30% discount compared to Europe, while "seeing" any correction as an opportunity for placements and an interesting entry point into the market.
Eurobank Equities recommends placements in shares with high and sustainable dividend yields, with limited effects from cost inflation (eg OPAP), shares that offer exposure to the "green transition" (eg PPC, Mytilineos), banks, in view of "Great consolidation" of NPEs, credit expansion and even more attractive valuations (National Bank is top choice) and cyclical shares and securities that benefit from the opening of the economy (OPAP, Mytilineos, Motor Oil).