Athens News Agency: News in English (AM), 99-08-31

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From: The Athens News Agency at <http://www.ana.gr>

NEWS IN ENGLISH

Athens, Greece, 31/08/1999 (ANA)

MAIN HEADLINES

• Papandreou begins meetings on EU financing of Turkey
• Concert given in Xanthi for Turkey quake victims
• Agricultural Bank gets Duty Free Shops shares for resale
• Forthnet completes share cap rise for bourse entry
• Stocks climb again in high turnover
• Bonds drop in profit-taking
• Attica Enterprises reports higher H1 profit
• Interamerican reports H1 profit jump
• Weather
• Foreign Exchange

NEWS IN DETAIL

Foreign Minister George Papandreou yesterday kicked off a series of contacts with political leaders and ruling PASOK party cadres, to discuss Greece's stance on European Union financing to Turkey, by meeting former PASOK foreign ministers Karolos Papoulias and Ioannis Haralampopoulos.

Following the meeting, Mr. Papoulias expressed his satisfaction over Mr. Papandreou's leading efforts in providing support for Turkey following the disasterous earthquake.

In regards to the lifting of Greece's veto on the Union's structural funds protocol with Turkey, Mr. Papoulias said "Greece should not be hasty on this issue and make decisions in the haze", adding that it would be better to wait on developments in talks within the Union and decide over the next few months.

He also made clear that humanitarian assistance is separate to funding through a protocol, which demands a political decision.

Papandreou proposal : Mr. Papandreou is to set out to his European Union counterparts in Saariseka, Finland, on Sept. 4, a Greek proposal incorporating the three existing Union regulations for financial aid to Turkey into a new one, also including one regarding assistance for the recent earthquake.

According to sources, the new regulation would have a different legal basis from the previous ones and will place emphasis on the sectors of energy, transport and industry.

Mr. Papandreou has already tentatively discussed the issue with the current president of the Union Council of Foreign Ministers Tarja Halonen and Turkish counterpart Ismail Cem.

Concert given in Xanthi for Turkey quake victims

Popular musicians George Dalaras and Thanasis Gayfillias yesterday gave a large concert in Xanthi, northern Greece, for the victims of the recent devastating earthquake in Turkey.

All the proceeds from the concert, which was held in both Greek and Turkish, will be handed over on September 17 in a way to be indicated by the Turkish authorities, along with the proceeds from a similar concert to be held in Izmit.

All musicians performed for free at the concert, which was broadcast by Turkish television channels and radio stations.

Agricultural Bank gets Duty Free Shops shares for resale

Agricultural Bank of Greece is to buy 23 million shares in Hellenic Duty Free Shops for 126.6 billion drachmas ahead of resale to unnamed investors and the allocation of management to the same group.

"The Agricultural Bank of Greece is committed to proceeding with the immediate sale of a block or blocks of shares to a group of investors and allocating management of the company to the same investors under terms and agreements it will negotiate," the finance ministry said in a statement yesterday.

The state securities management agency will sell the stock to Agricultural Bank, and the ministry's deal with Agricultural was the result of negotiations, the statement said.

The move follows abortive tenders for the sale of Hellenic Duty Free Shops, which is listed on the Athens Stock Exchange.

Forthnet completes share cap rise for bourse entry

Forthnet, which is expected to be the first Internet provider to enter the Athens bourse, has successfully completed a 20 percent increase of its share capital, the company said yesterday.

It said in a statement that shareholders' equity now totalled 4.6 billion drachmas.

Taking part in the increase with a 12 percent stake was the Interamerican Group.

The remainder went to staff and associates of the company.

Also holding equity in Forthnet are Minoan Lines, the Research and Technology Institute and the Cyprus Development Bank.

Stocks climb again in high turnover

Equity prices resumed their upward course yesterday following a wave of profit taking late last week, helped by increasing liquidity in the market.

The general index soared 1.48 percent to end at 5,220.28 points off the day's highs, and near its record close of 5,224.15. Turnover was 350.071 billion drachmas.

The Banks sector underperformed the market ending 0.55 percent lower while Construction shares remained at the focus of attention with the sector index ending 8.0 percent higher, reflecting limit-up gains in 28 out of the 29 shares in the sector.

Other sector indices ended as follows: Insurance (+4.04 pct), Miscellaneous (+4.20 pct), Leasing (+5.01 pct), Investment (+3.86 pct), Industrials (+2.04 pct) and Holding (+3.56 pct).

The parallel market index for smaller capitalisation stocks rose 4.97 percent while the FTSE/ASE index for blue chip and heavily traded stocks ended 0.06 pct higher at 2,803.65 points.

Broadly, advancers led decliners by 248 to 49 with another five issues unchanged.

A total of 116 shares ended at the day's 8.0 percent limit up.

Naoussa Textiles and Ergo Invest were the most heavily traded stocks, while Lambrakis Press, Naoussa, National Bank, Alpha Credit Bank and Piraeus Bank led the day's turnover.

Autohellas shares rose 99 percent on the first day of trading in the market.

National Bank of Greece ended at 22,995 drachmas, Alpha Credit Bank at 23, 380, Commercial Bank at 28,280, Titan Cement at 34,795, Hellenic Petroleum at 3,235, Intracom at 26,390, Minoan Lines at 7,350, Panafon at 9,080 and Hellenic Telecoms at 6,530.

Bonds drop in profit-taking

Secondary market bond prices slumped in light to moderate trade yesterday with mainly domestic institutional investors raking in their gains. Worst hit were 10-year securities

Electronic turnover was sharply higher at 38 billion drachmas from 8.0 billion drachmas in the previous session and 62 billion drachmas on Thursday.

Of yesterday's total, sell orders accounted for around 36 billion drachmas of the total.

The benchmark 10-year bond was trading around 98.75, showing a yield of 6.50 percent from 6.39 percent in the previous trading day and 6.34 percent on Thursday.

The yield spread over German bunds was 164 basis points from 161 basis points in the previous session and 163 basis points on Thursday.

At the central bank's daily fix, the euro crept down versus the drachma. It ended at 326.430 drachmas from 326.580 drachmas a session earlier.

Also at the fix, the dollar edged down against the drachma but remained high in line with its performance in markets abroad.

The greenback was set at 312.100 drachmas from 312.280 drachmas in the previous session and 312.220 drachmas on Thursday.

Derivatives trade noses up : The number of derivatives trades in the country's new market rose to 680 contracts yesterday in the second day of operation from 602 in the first session, traders said.

Of total trades on the Athens Derivatives Market (ADEX), 529 were September futures, which closed at 2,809.70 after ranging between 2,800.50 and and 2, 835.00 during trade.

The remaining contracts were October futures.

Attica Enterprises reports higher H1 profit

The Attica Enterprises Group, operators of Superfast Ferries, yesterday reported a 14.8 percent increase in its net profits to 2.66 billion drachmas in the first six months of 1999 compared with the same period of last year.

Turnover was 12.2 billion drachmas, up 22.6 percent from the first half of 1998, the company said in a statement yesterday.

Superfast Ferries' four ships, which ply the Greece-Italy line, carried 195, 381 passengers, 35.5 percent more than the corresponding period last year.

Trucks were 41.1 percent higher (51,306) and vehicles 34.5 percent up (32, 269).

Superfast Ferries claimed the biggest market share in the Greece-Italy line in passengers and trucks, and the second biggest in vehicles. A total of 35 ferries ply the Adriatic Sea route, it said.

Attica Enterprises has launched an investment programme worth 650 million US dollars, which envisages the building of six new Superfast ferries to be delivered in two stages by 2001, raising its total fleet to 10 ships.

Interamerican reports H1 profit jump

Interamerican Life said yesterday it posted consolidated pre-tax profits of 18.6 billion drachmas in the first half against the same period of last year, up 90 percent. The company said in a statement that premiums totalled 43.6 billion drachmas, up 37 percent on the first half of 1998.

WEATHER

FOREIGN EXCHANGE

Tuesday's rates (buying)

(M.S.)

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