By Martin Hellicar
IT WAS a quiet day on the market yesterday, with the all-share index moving up by just a fraction and the volume of transactions hitting an all-time low.
A combination of low investor confidence and the August holiday lull meant only £12,035,306 changed hands during yesterday’s session.
The all share index closed at 373.28 points, up by a marginal 0.68 points, or 0.18 per cent, compared to Wednesday’s close.
The vice-chairman of the stock brokers’ association, Stavros Agrotis, was cautious in his interpretation of yesterday’s market performance.
“The volume was very low and it is difficult to draw any conclusions, we need tow or three more days before we can judge where the market is going,” Agrotis said.
On Wednesday, the market was up for the first time in a week of trading. But the index remains below the 400-point support level and miles away from the highs of a year ago.
The market has lost more than 50 per cent of its value since January following a 688 per cent increases last year.
Finance Minister Takis Klerides yesterday announced a package of measures aimed at boosting the market and called on institutional investors to act to boost stocks.
Agrotis advised investors to stay calm, promising that the market was stabilising. He also called on banks to be more forthcoming with investment loans.
“If we can convince people not to panic sell and the banks become more flexible then we most probably will have a stabilisation of the market, as a first stage,” he said.
“The prospects of some companies are so good they are unreal,” the broker added, talking up the market. “With stabilisation of the market we might get announcement of results from a number of companies waiting for a better climate,” Agrotis speculated.
This would give the market a real boost, he predicted.
“This will be a new beginning which might be more healthy than the situation last year with so many ups and downs.”
Analysts expect the market to hover around the 400 mark for the time being.
Almost half of yesterday’s transactions were concentrated in shares in the “other company” sector. The sector gained 0.66 per cent.
The manufacturing company, tourism and trading company sectors were down slightly, while the investment company, banks and insurance company sectors rose slightly.
Bank of Cyprus shares dropped two cents to close at £6.72. Laiki shares gained 7.5 cents to end at £9.50.
Globalsoft did well to gain 19.5 cents, ending at £3.90.
Minerva was the top performer in the insurance sector, gaining two cents to close at £1.04.
Severis and Athienitis shares were up three cents at £1.71 while fellow investment company Sharelink Financial Services gained two cents to close at £1.81.
