Eurobank: Time to take chips off table after Greek equity bounce

Allwyn AG

23/08/2022 13:28

ATHENS, Aug 23 (Reuters) - Macroeconomic fundamentals are
likely to get more challenging in the next few months given
uncertainty over gas flows and investors should take advantage
of a recent rally in Greek shares to trim exposure, Eurobank
Equities said on Tuesday.
    The brokerage, a unit of Eurobank  EURBr.AT , said that if
inflation proves sticky, the market will remain prone to swings
in risk perception stemming from rate rises by the Fed and the
ECB, meaning a renewed downturn in sentiment.
    Greek stocks  .ATG  have bounced about 11% since June lows,
mirroring a slightly lower advance by the pan-European share
index STOXX 600  .STOXX , helped by a "peak inflation" narrative
across equity markets.
    Greek bank shares led the rally with 16% gains since
mid-June, outperforming European peers over the same period,
propelled by ultra-low valuations, solid second-quarter results
and guidance upgrades.
    "We expect a renewed downturn in sentiment and stick with
our view that investors should take advantage of the recent
rally, trimming their exposure," Eurobank Equities said. 
    Eurobank Equities said it prefers stocks with dividend
support such as OPAP  OPAr.AT , Motor Oil  MORr.AT  and stocks
with positive earnings momentum such as Mytilineos  MYTr.AT .
    The brokerage also cited increased political risk after a
recent wiretapping scandal.
    Revelations that the country's intelligence service tapped
the phone of the leader of the socialist opposition PASOK party
has caused a rift between PASOK and the ruling New Democracy
party.  urn:newsml:reuters.com:*:nL8N2Z72AD
    "The scenario of a coalition between the two parties – the
most obvious viable scenario of a government being formed at the
next elections – has seen cracks," it said.

 (Reporting by George Georgiopoulos; editing by Frank Jack
Daniel)
 ((george.georgiopoulos@thomsonreuters.com; +30210 337 6437;
Reuters Messaging:
george.georgiopoulos.thomsonreuters.com@reuters.net))