Athens Stock Exchange: Gains of 15.24% Since the Start of 2025

The Athens Stock Exchange closed the week with an increase of 4.07%. The market is now approaching levels not seen since February 2011, closing at highs not observed in 14 years. Today’s rating announcement (March 14, 2025) by Moody’s for the Greek economy is highly anticipated, as it is the only major ratings agency that has yet to assign Greece an investment grade. Some analysts believe a minor upgrade would have little impact, given that investors already treat Greek assets as if they have achieved investment grade status. However, many consider Moody’s evaluation crucial due to its status as the world’s largest ratings agency. In the event of an upgrade, demand for Greek bonds could soar to €20 billion. Meanwhile, positive reports about the banking sector continue, with investment firms reiterating their support for Greek bank stocks following the release of 2024 financial results. Morgan Stanley has expressed bullish sentiment, predicting a potential 25% rise in share prices and up to 50% in a more optimistic scenario. Greek banks remain undervalued compared to their EU counterparts, with price-to-earnings ratios projected at 6.5x P/E for 2026. Various securities firms have raised target prices for Greek banks, emphasizing the significant discount compared to European peers. Overall, dividend yields exceed 8% based on expected 2025 profits.