Athens Stock Exchange Q1 Profit Shrinks as Volumes Decline

The political turmoil that engulfed Greece has resulted in even less appetite for trading on the country’s stock market.

Hellenic Exchanges S.A. has announced that the first quarter of 2016 has resulted in €1.9 million ($2.1 million) in after tax profits. The result is starkly different from the first quarter of 2015, when the profits of the Athens Exchange Group totaled €4.1 million ($4.6 million).

The 54 per cent decline year-on-year is a direct result of declining turnover. After the introduction of capital controls in Greece in June 2015, trading activity and the capitalization of the cash market in the country have significantly declined.

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According to the earnings report, the average daily traded value (ADTV) of securities amounted to €71.7 million ($79.6 million), which is lower by 38 per cent when compared to Q1 2015’s €116.2 million ($130 million). The exchange reported that on the day of the announcement, the 23rd of May 2016, the ADTV totaled €72.4 million ($81.2 million).

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Throughout the past year the average capitalization of the Greek capital markets dipped 20 per cent to €39.1 billion ($43.8 billion). Looking at the present day, the value has increased to €46.9 billion ($52.6 billion) which is an increase of 20 per cent.

The measure of market liquidity, which is determined by the velocity of turnover, has dropped by 45.8 per cent in Q1 2016 from 59.5 per cent in the first quarter of 2015. The average daily volume (ADV) of transactions totaled 124 million shares, which compares to 210 million during the same period last year.

Looking at the derivatives market the average daily number of contracts declined 23 per cent to 66,800. The corresponding trading and clearing revenue decreased by 55 per cent due to the drop in the value of the securities in the shifting product mix.

Τotal operating expenses of the Athens Stock Exchange remained more or less consistent with the figure amounting to €4.16 million ($4.66 million) against €4.10 million throughout the first quarter of 2015.

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