2025 is a more than positive year for the main European stock exchangesDespite tariffs and wars, since the beginning of the year, all the major stock markets in Europe, from Madrid to Milan, from Frankfurt to London, via Paris, have recorded gains, even double-digit ones. But broadening the horizon to include smaller markets reveals even more surprising performances. One example? The Athens Stock Exchange which has made an imperious ride since January 1st, scoring a 44% markup. More than South Korea (+37%), but also more than Madrid (+32,8%) and Milan (+26,7%), the best among the main continental markets. Driving what is effectively the best world performance To date, it is a banking sector that is in great shape and, according to analysts, with increasingly interesting growth prospects.
The Athens Stock Exchange is among the best in the world
Over the last 9 months, the Athens Stock Exchange has recorded a constant growth that has brought it to a total of 2119 points, the highest in the last 15 years. And it might not end there, considering that last month JP Morgan recommended investing in Greek stocks, expecting good returns with a relatively low risk profile, while Goldman Sachs promoted Greece as a "key destination for international investors in emerging markets." These assessments are based on several factors: in the second quarter of 2 the Greek GDP rose by 2,2% on an annual basis compared to the +0,1% achieved by the Eurozone, while the foreign investments continue to increase and listed companies are making profits. Characteristics that may have contributed to triggering Euronext's interest. The pan-European group which includes the stock exchanges of Paris, Milan, Brussels, Amsterdam, Lisbon, Dublin and Oslo, launched on 31 July a takeover bid on the Athens Stock Exchange Athex with the aim of integrating it into its markets. The transaction involves a share exchange offer valuing Athex shares at 7,14 euros. The group cites the underlying reasons for the transaction as "strengthening the competitiveness of the European Union" and of the European capital market, and the "significant benefits for the Greek market," including in terms of investment attractiveness. The Athex board "unanimously supports the offer to shareholders and has entered into a collaboration agreement with Euronext," according to the statement.
Athens Stock Exchange: Banks Lead the Gains, Led by Alpha Bank
International and local investment firms are very optimistic about Greek banks. Goldman Sachs believes that the banking sector will continue to grow, supported by its solid "capital adequacy ratios" and a reduction in bad loans. According to UBS, Greek banks are among the most convenient and attractive in Europe, while Bank of America sees a significant “upside potential” for the country's four major lenders, with the combination of growing lending and high dividends seen as a powerful driver of the continued solid performance of Greek bank stocks.
Opinions that are also reflected in the increases recorded since the beginning of the year: the queen of the Athex is Alpha Bank which has increased by 130% since the beginning of the year. Greece's second-largest bank is also benefiting from the banking risk game, which, at least in Athens, is not facing any government obstacles. On the contrary, quite the opposite. Last May, UniCredit increased its stake in Alpha Bank to 20% – declaring its intention to reach 29,9% of the capital – with the support of the Greek government, which described the investment as "a vote of confidence in the Greek economy." The collaboration between UniCredit and Alpha Bank dates back to 2023, when Piazza Gae Aulenti purchased a 9% stake in the Greek bank from the Athens government and a majority stake in its Romanian subsidiary. merger between Unicredit Bank Romania and Alpha Bank Romania was completed a few days ago. Meanwhile, Alpha Bank also announced the acquisition of Axia Ventures, which will be integrated with the investment banking of the institution and completed the acquisition of 100% of FlexFin, a company specializing in financing for small and medium-sized businesses.
Other major Greek banking companies also saw dramatic increases: Piraeus Bank – whose board also includes Enrico Tommaso Cucchiani, former CEO of Intesa Sanpaolo and current president of Open Fiber – has gained over 84% since the beginning of the year, National Bank of Greece scores +65%, Eurobank salt by 54%.
Among the best stocks are also the Greek construction giant Avax (+71%) and Metlen Energy and Metals (+57%) which a few months ago signed an important agreement with the London Stock Exchange.
