The return of the Athens Stock Exchange (ASE) after years of decline and turmoil still has a long way to go before it can be considered a complete success. While the earnings from the end of September 2022 have been impressive, there are several factors that need to align in order to solidify its return.
Using a football analogy, the ASE is like a team that has just been promoted to the English Premier League. It needs to be cautious and avoid immediately falling back to the lower class. Stable management, although crucial, is not enough to ensure success. The coach, players, and fans all play a crucial role in the team’s performance. In the case of the ASE, its management has shown promising signs of knowing what needs to be done.
Efforts to reduce transaction costs and adjust trading rules have been made to make it easier for investors. By prioritizing the introduction of new companies to the exchange, the management recognizes the importance of diversification. There have already been several cases of companies initiating actions to join the ASE, including the well-known Athens International Airport. While its introduction has faced obstacles in the past, it is now on track to join the main market of the ASE.
The entrance of such a large and successful company will be a landmark for the Greek stock market, attracting international mutual funds, pension funds, and insurance companies. Additionally, other companies, particularly real estate investment companies, are also expected to join the ASE in the near future. This gradual emergence of interested firms from various sectors of the economy is expected to generate significant interest and capital.
In addition to new company introductions, the ASE is also focusing on bond issuances as a means to raise capital. After a temporary halt due to international uncertainty, bond issuances have seen a dynamic start, with the notable offering of a new seven-year corporate bond by Mytilineos. This signals potential for new funds entering the exchange.
While new introductions and bond issuances are key to maintaining the ASE’s momentum, it is also important to focus on waking up the already listed companies. Moves have been made by various companies to attract new investors, raise capital, and make strategic acquisitions. These actions contribute to the overall growth and stability of the market.
Political stability and the upward trajectory of the Greek economy, including an anticipated return to investment grade, provide a solid foundation for the ASE. With the right management strategies and continued investments, the ASE has the potential to reach new heights in terms of quality and quantity.
Just as fans flock to stadiums when good football is being played, investors will be drawn to the ASE as it continues to improve and expand. By prioritizing investor-friendly measures and attracting new companies, the ASE is on track to become a more attractive and lucrative market.
Overall, the ongoing efforts to strengthen the ASE show promising signs of progress. While there is still work to be done, the return of the ASE from its previous challenges has the potential to be a long-lasting success.
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