Week of collapsing valuations – but this is why the correction has not ruined the bigger picture

The market’s course frightened many investors, and after many months we again saw signs of panic and free selling.
The mix of news was what caused turbulence both in our market and in foreign ones.
For internal reasons, the correction of the Athens Stock Exchange started earlier than the foreign ones and continued due to concerns arising from the U.S. market.
The Allwyn-OPAP deal, Metlen’s performance, the legislative regulation that “targeted” Hellenic Exchanges and Euronext’s public offer, as well as concerns about regional banks in the U.S., changed the climate—and while the General Index was looking toward new highs and the banks had already recorded gains, it collapsed and turned below 2,000 points.
So there were many reasons for the drop, which were analyzed earlier. See here.
Now we should focus on the result of the drop and the next day.

What the technical picture shows

The truth is that the drop has not affected the charts, and many have not suffered damage. Many stocks remain above both the exponential and simple 200-day moving averages, which define the trend, and that trend remains upward. Therefore, some stocks could correct further without causing chart-related concerns.
At the limit with the two moving averages are HelleniQ Energy—where the correction began earlier—EYDAP, which has also corrected from a higher level, and Motor Oil, which yesterday touched the exponential and is close to the simple. Sarantis is also slightly above both moving averages. With a somewhat larger distance from the moving averages are the prices of Aegean and PPC.
Well above, and not worrying, are the charts of the banks compared with the moving averages (Piraeus, Alpha, NBG, Eurobank, Optima), as well as those of Viohalco, Cenergy, Lamda, ElvalHalcor, Athens Airport, and GEK Terna. Therefore, we do not believe there is yet any cause for concern for these stocks, and any correction is considered natural.
Down and moving poorly, as expected, is OPAP, which forcefully broke through the moving averages. Also well below both 200-day averages are the share prices of Jumbo and Metlen, while slightly below are Titan and OTE.
Marginally below is Coca-Cola, but with the upward movement of recent days, it is heading toward a breakout which, if achieved, will give good upside potential.

The picture of the General Index

The General Index returned to the levels it had in July, before the August move began—essentially at a 2.5-month low.
The exponential 200-day moving average stands at 1,844 points. Therefore, while the move may have caused concerns, technically there is still room. Last April, the correction was larger, yet it was again covered and the market went significantly higher. The correction is also justified due to the large percentage increase the market has had since the beginning of the year.

The fundamentals

Although some results brought pressure on specific stocks and there were quite a few disappointments, the correction has once again made several stocks attractive. A characteristic example is OPAP, which until recently was considered fully valued, or Metlen, Jumbo, Aegean, as well as several mid- and small-cap stocks.
The question is: which entrepreneurs will manage to convince that after the correction, their stock is the best investment choice in Greece?

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