…index surges past 3000 level on record volume
The CSE Council proceeded with a major shake-up of its component stocks ahead of the launch of the common trading platform with the Athens Stock Exchange at a time when its General Index (GENX) surged past the psychological 3.000 mark on record volume as investors poured money into stocks.
The Main & Parallel market index, or GENX closed at 3016.33 points, its first break past the 3.000 level since the index was launched in September 2004 at the base level of 1.000. Since the start of the year, the index is up 76.94%. Based on the old CSE index, the market is at 194.65 level according to Financial Mirror calculations.
The massive increase coincided with record volume on the CSE, which on Tuesday hit CYP 12.5 mln, powered with spectacular interest in banking stocks, which once again were the driving force pushing the CSE to new highs.
Bank of Cyprus closed at a fresh record of CYP 4.72, taking its year-to-date gains to 79.5%. Laiki closed at CYP 3.06 bringing its year to date gains to 67.2%, while Hellenic Bank finished at CYP 1.45, taking its year to date gains to 154.4%.
In Greece, the BOC shares ended at EUR 8.4 or CYP 4.83 on EUR 23 mln or CYP 13.25 mln volume, indicating more gains are in store for BOC and the GENX when trading starts on Wednesday as the shares make an attempt on the next chart objective of CYP 5.00 level according to Financial Mirror charts.
Among Main market stocks, SFS Group Public Co., which closed at 12.5 cent is up 87% while FWW, closing at 43 cent is up 74%.
Shake-up
In the first shake-up since the existing council came to power, the CSE decided to enforce its rules, which have been in place since September 2004, but seldom implemented.
Citing the fact that K. Athienitis Contractors Developers Public Ltd. and
MFS Holdings Public Company Ltd. did not meet its minimum CYP 4 mln market cap to remain in the Parallel market, the CSE shifted the two stocks to the Alternative Market, effective May 11, 2006.
Out of Alternative
From the Alternative Market, which needs a minimum CYP 600.000 market cap, the CSE transferred to the Special Trading Category the titles of Cyprint, Efremico Holdings, Modestou Sound &Vision, Palinex Trading, Pipis Bros Farm, Plyntex, R.A.I. Consultants, Spidernet Services, D & M Telemarketing and Unifast Finance & Investments for failing to meet the minimum market cap criteria.
Out of Investments
From the Investment Companies Market, which also needs a minimum market cap of CYP 600,000, there will be a shift to the Special Trading Category of the titles of Exelixis Investments, Harvest Capital Management, Ischis Investments, Karyes Investments, Laser Investments and Leda Investments.
CSE noted that Knossos Investments Public Ltd, which is already in the Special Trading Category, does not fulfill the criterion of the minimum stock market value.
Audit delay
The CSE also noted that New Marathon Tours, Renos Hadjioannou Farm, Palinex Trading, Knossos Investments, Cyprus Airways and Suphire Holdings, which are already in the Special Trading Category, have not submitted their financial statements for the year ended December 2005 yet.
Worldmax Investments, which has not submitted the audited financial statements and the independent auditors report for the year ended December 2005, has been delisted by the CSE Council, which expects SEC’s agreement.
Not viable
The CSE also expressed its concern regarding the future viability of SAFS Holdings, Plyntex, A.L. Prochoice Group, Pipis Bros Farm and Xenos Travel without elaborating what action it intends to do.
Trading in the Special Trading Category will commence on Thursday, May 11, 2006.
