By Hamza Hendawi
BANK shares are at it again.
After nearly two weeks of playing second fiddle to such upstarts as Nicos Shacolas’ CTC and Woolworth, bank stocks appear to have regained their traditional place in the fast lane of the Cyprus Stock Exchange.
Hellenic Bank, an unlikely leader only months ago, was at the forefront in yesterday’s trade. It notched up 48.50 cents to close at £5.55 with nearly £2 million worth of trade. Considering that this was a bank that only a few months ago was dismissed by almost everyone as an also-ran among high- flyers, Hellenic’s performance in recent weeks has come as a total shock.
If rumours are to be believed and the bank’s denials are to be dismissed, then Hellenic is the target of a lucrative takeover by a large Greek bank.
But regardless, Hellenic shares have appreciated by an astounding 70 per cent since the end of March.
Also ending the day sharply higher yesterday was the Bank of Cyprus. It went up by 15 cents to close at £7.06, while close rival the Popular Bank rose by 11 cents to finish at £4.03.
Universal Savings kept with the pace of its big brothers, shooting up by 10.50 cents to close at £2.52.
The sub-index of the four banks closed higher at 221.99, 3.14 per cent up on Wednesday’s close.
The banks’ rally, which attracted £4.59 million from a total volume of £15.26 million, helped the all-share index rise by 1.70 per cent to close at 168.05, the market’s eighth consecutive all-time high.
All three listed trading companies — Woolworth, CTC and Orphanides — finished in negative territory yesterday, shedding 13 cents, 11.50 cents and 5.50 cents respectively. The sector’s sub-index plunged by a painful 7.93 per cent.
The gains of the last eight sessions lifted the appreciation of the market so far this year to a staggering 85.42 per cent, or more than four times the gains for the entire 1998.
Barring any unforeseen developments, the market is expected comfortably to cross the 100 per cent threshold by the autumn or later in the year.
While the possibility of a sharp downward correction does exist considering the dizzying heights of late, there is good reason to believe that the market can maintain its momentum.
Such momentum can largely be realised through the injection of new blood with the scheduled listing of such sure bets as Louis Tours’ cruise division, and investment banking powerhouses Severis & Athienitis Securities Ltd and Share Link Securities.
Bank of Cyprus shares are also destined for a two-for-one split and a new rights issue in September, both set to stoke interest in the bank.
