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Greek stocks end mixed in thin trade, support seen

ATHENS: Greek equities fluctuated widely on Thursday but closed marginally higher, breaking out of a two-session losing string as selling pressure eased, helping the benchmark index stay above 5,000 points.

The general share index closed up 0.02 percent or 1.05 points at 5,068.36 from Wednesday's 5,067.31 close, having oscillated between an opening high of 5,136 and a 5,032 low.

Individual sectors were also mixed, most closing with marginal gains or losses. Industrials and small-cap stocks slightly outperformed.

The bourse's FTSE/ASE-20 blue chip index dipped 0.09 percent to 2,642.47 while the FTSE/ASE-Mid 40 index 40 of mid-cap shares firmed 0.16 percent to 941.60.

Market watchers said the market reflected investor cautiousness rather than being driven by fundamentals and prospects. They expected prices to head higher after some more near-term range trading.

"Sentiment is still dented, with many investors disappointed to see no rate cuts after the revaluation (of the drachma's ERM-2 central parity)," said Dimitris Katsabekis, investment director at International mutual funds.

He said only a major international adverse effect would drive the local market considerably lower from current levels.

"This episode of price weakness is among the last. I expect the index to hit 6,000 points by March as the inevitable prospect of lower interest rates is a very strong factor for equities," Katsabekis said. Another broker said the market managed to stay afloat today with the help of more active buying by domestic investors and a discontinuation of selling by international players.

"The net impact of foreign funds was minimal today, easing the selling pressure from previous sessions," said the broker who declined to be identified.

"Local players, both retail and institutional, provided some support becoming a little more aggressive in their buying."

The central bank skipping its weekly tender of 14-day deposits on Wednesday, a decision that disappointed hopes for an aggressive rate cut.

Central bank officials indicated that official rates will be lowered after evaluating inflation conditions for January.

The European Union revalued the drachma's ERM-2 parity to 340.75 versus the euro on Saturday, slightly more than the markets had expected.

Prime Minister Costas Simitis told parliament on Wednesday the revaluation will shave 0.5 to 0.8 percentage points off inflation.

Business publications specialist Epiphania announced the acquisition of a 40 percnet equity stake in each of three firms active in advertising, TV and motion picture production and distribution.

Advancers beat decliners 181 to 138 with nine stocks unchanged on 328 traded.

Turnover reached 220.5 billion drachmas on volume of 31.3 million shares, including block trades in Neorion Shipyards.-Reuters