Market Talk May 17

Selling pressure

The global equity market shake hit Athens and BOC shares trading in Greece, which in turn hurt sentiment on the CSE. The negative mood eclipsed the fantastic set of first quarter results delivered by BOC, which under normal circumstances should have rallied higher, especially after the barrage of upgrades on the stock by major foreign investors such as UBS and Deutsche Bank.

The pattern on BOC however, reminds us of the price action last February when immediately after a fantastic 2005 results and upgrades by UBS and DB, the share price initially fell, only to recover after and hit new highs.

We have the good figures, the upgrades (UBS now sees BOC at CYP 7.2) and the down correction following the release of the results. All that is required now is for the new recovery to follow suit.

FOR THE FULL STORY, PLUS “CHART TALK”, SEE OUR PRINT EDITION THIS WEEK OR GO TO www.financialmirror.com->Research Centre->Investing->Cyprus equities