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Energy players shine on Athens bourse in 2020

It is noted that since the end of 2019 the general index has lost 14.1%, blue chips dipped 18% while bank shares gave up 44.2%, the worst performers of the market.

PPC, Terna Energy, Mytilineos and IPTO are the four stocks that stole the show in 2020, ending the year with big gains, against significant losses in the broader market.

A common denominator between the four is a presence in the energy sector that is rapidly transforming into a key driver of the domestic economy. On the downside, banks showed the biggest losses, along with other companies hit hard by the pandemic: air transport (Aegean), oil (ELPE and Motor Oil) and retail (Jumbo, Fourlis).

It is noted that since the end of 2019 the general index has lost 14.1%, blue chips dipped 18% while bank shares gave up 44.2%, the worst performers of the market.

Since March 18, when the domestic market hit a year low due to the pandemic, the general index closed at 487.35 points, 46.8% down since the start of the year. Since then the market has gradually recovered, however the big rally took place in the last few weeks: on November 6 the general index closed at 588.10 points and then rose to the 800-point mark where it is today.

Outperformers

  • PPC: It was an impressive turnaround story as not too long ago, in April 2019, when its 2018 earnings figures were published, auditors underlined the "substantial uncertainty related to the continuation of its activity" due to its deteriorating finances. The turning point were the national elections in July 2019 when the new government made significant changes to end its bleeding while a new business plan was presented by the management of the company for 2021 - 2023 focusing on the achievement of EBITDA profits of 1.1 billion euros in 2023 and large investments in green energy. The share is currently trading at levels above 7 euros, up 73.1% for the year.
  • Terna Energy: With a total installed capacity of 1,373 MW, of which 728 MW is installed in Greece, 513 MW in the USA and 132MW in Southeastern Europe, it is one of the largest investors in Renewable Energy Sources. It is noted that the company plans significant new investments with the aim of total installed capacity reaching 2,800 MW over a 5-year horizon. At the same time, the company is expanding into new activities by participating together with the IPTO subsidiary Grid Telecom in the competition for Ultra fast Broadband. This is a project worth 870 million euros that will achieve ultra-high Internet speeds over 100 Mbps. The company's share jumped 67.1% for 2020.
  • Mytilineos: Having laid a strong foundation in strategic business sectors such as energy and renewable energy sources, EPC (Engineering - Procurement - Construction) Projects and more broadly in the field of infrastructure but also with a leading position in metallurgy being, through Aluminum of Greece , one of the largest vertically produced aluminum and alumina producers in the European Union, Mytilineos, in 2020, managed not only to present durable results but highlight large-scale economies and synergies of its business model. Since the beginning of the year, the company's share has increased by 18.9%.
  • IPTO: This is the silent giant that ensures the continuous energy supply of the country. Its massive investment is in full swing with the goal that by 2030 almost all Greek islands are connected to the mainland, ensuring cheap, clean and reliable electricity. IPTO's total investment program has a horizon of 10 years and includes total investments of 5 billion euros, including the electricity interconnection of Crete and the Cyclades. The company's share since the beginning of the year increased by 10.8%.

Standing out

Sarantis, Ellaktor are also up on the year, as well as Viohalco. The share of GEK Terna (-0.7%) marks a marginal decline with the company being on a course of strong growth. EYDAP is showing a single-digit decline (-8.2%) while OTE’s share is down 9.3%, though many had expected the shift to the digital economy to have boosted the share more. OPAP is also off 9.4%, despite the blow caused to the company by the lockdown.

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