In its latest update on fixed-income recommendations, JP Morgan stated that while it maintains a constructive medium-term outlook on Greece due to strong macroeconomic and fiscal fundamentals, as well as a stable political landscape, it remains neutral in the short term.
The financial institution noted that Greek bonds appear to have become slightly “expensive.”
The international firm also sees potential risks of reduced supply pressures, anticipating Greece’s completion of a 10-year bond issuance today.
Recently, JP Morgan recommended an “overweight” position for Greek equities within the Central and Eastern Europe, Middle East, and Africa (CEEMEA) region. It projects a 17% upside potential for the MSCI Greece Index under its baseline scenario.
Market analysts suggest that the General Index of the Athens Stock Exchange (ASE) could exceed 1,700 points, particularly if FTSE Russell grants the ASE-developed market status in the spring. A similar move by MSCI, the largest index provider, could follow in the summer, with Greece being placed on a watchlist for reclassification into developed markets.
According to market analysts, the corporate earnings of ASE-listed companies are expected to reach historic highs of nearly €11 billion in 2024. Total dividends are also forecasted to rise to approximately €4.7 billion, up from €4.25 billion in 2023, further enhancing the attractiveness of the Athens Stock Exchange.
The Greek government successfully launched a new 10-year bond, raising 4 billion euros, exceeding the initial target of 2.5-3 billion euros. This amount represents half of Greece’s annual borrowing goal set by the Public Debt Management Agency (PDMA).
The bond’s yield was set at approximately 3.6%, equivalent to a spread of 102 basis points over the mid-swap rate.
