Laiki pulls CSE to fresh record

A powerful rally by the shares of Laiki Bank (CPB) helped lift the Cyprus Stock Exchange General Index to a new record high for the year, which also coincided with a record rise in volume to CYP 12.5 mln.

Laiki shares surged 6% to a fresh six-year high of CYP 3.17, and well above the previous record of CYP 3.06 (now turned support), on the back of heavy buying by investors following broad based purchases by Marfin, which reinforced confidence in the stock as well as positive comments by UBS and Moody’s regarding the proposed three-way merger with Marfin and Egnatia.

Technical charts prepared by the Financial Mirror point to 3.31 being the next resistance level, but the new target/objective has become the 3.47 level, which is a combination of the March and May 2006 highs of Laiki. The 3.47 level is also at a 15% premium compared to the merger swap rate of Laiki of CYP 3.00, which is considered as satisfactory to convince ordinary investors to back the motion for the three-way merger when they gather in Nicosia on October 24.

The strong rally on CPB was coupled by also an impressive performance by Bank of Cyprus (BOC), which after the close announced that it will enter the FTSE ATHEX 20 on October 9. BOC closed 1.5% higher on the CSE Thursday at CYP 4.64, and is now targeting its previous record close of 4.76.

Hellenic Bank (HB) meanwhile closed at a fresh record close of CYP 1.55, for a daily gain of 1.97% with the next objective being the 1.59 and then 1.65 levels according to the Financial Mirror charts.

The CSE GENX closed 2.44% higher on Thursday to a record close of 3051.94 on heavy volume of CYP 12.57 mln. All the sub-indices closed at record highs.