New balance scandal: How risky is Greek share?

After the fall of the Greek stock market from 2014 to early 2016 from 2017 to mid-2018, a very slow recovery announced. But since last summer, the development of the indices in Greece shows back down. Now you have arrived back in the area of historical lows.

Tobias Piller

economic correspondent for Italy and Greece, with seat in Rome.

F. A. Z.

the Doubts as to Greece, a scandal around a previous hit titles contributed to: when it comes to jewellery manufacturer Folli Follie, the continued to take part in a turnover of 1.4 billion euros, flew on a wide-ranging accounting fraud, according to the volume of business is probably only half as large as originally claimed. About a third of the shareholders of Folli Follie comes from abroad.

Because of the inevitable restructuring of the debt, the Bank suffered a title. Which in turn were the subject of speculation over the bad loans, which proved to be the views of restored Bank balance sheets to be exaggerated. “Of course, Greece has a bigger credibility problem than other countries,” says an Athenian skilled in the art from the world of Finance. “Because of the falsification of public statistics, the distrust is so great that any further bad news from the corporate world, and inflicts damage.”

But back to the low point of the stock market, the Athenian actors of the financial world now see the future a little rosier, with a bit of cautious optimism. For Tasos Anastasatos, chief economist of Eurobank, Greece has now the worst is over, even if he makes otherwise many limitations: The economic environment is outside of the country was no longer in 2019 so cheap, and the local development of mountains certain risks. However, political uncertainty in an election year was really not a Greek specialty, is everywhere, says Anastasatos. Even an unfortunate scandal in the corporate world have its positive sides, because now the discussion about a long-needed Reform of the companies have started legislation.

Ten title with good dividend prospects

The chief analyst of the Athens Finance company Beta Securities, Manos Chatzidakis, comes straight to the point: At current rates, there is currently Greece’s stock market bargains with attractive dividends, such as Jumbo goods as wholesale distributors of the game, the airline Aegean Airlines and the aluminium producers and power plant builders Mytilineos. Two more listed companies could be from the point of view of Chatzidakis because of their perspectives on progress on Privatization, an interesting speculative investment:

belong to one of the state Oil company Hellenic Petroleum. On the other, the real estate investor Lamda will offer the opportunity to invest in the planned construction of an entire new city district on the former airport in Athens. The contracts for the project were completed in 2014, and then by the current government, Tsipras again and again been delayed. In the speculation, the anticipation of a change in government, the Conservatives, said of the polls, ahead of and for Lamda is finally on the way would make swings in some Greeks.