Cyprus-Forum.com

[joe]

Cyprus shares hit record high on euro, BOC upgrade


16/05/2007

Cyprus equities surged to a record closing high for the year on the day when the European Commission formally backed Cyprus’ application to join the eurozone, but stocks busted through previous highs as Bank of Cyprus shares roared a massive 5.6% following new price upgrades from international investment firms.

The CSE Main index closed at a fresh record of 4718 points, bringing its gains to 20.96% since the start of the year with Bank of Cyprus shares galloping 5.67% higher to a record close of EUR 13.04 after JP Morgan joined a chorus of international investment firms in upgrading the stock higher.

Since the start of the year, Bank of Cyprus shares are up 26.4%.

JP Morgan issued a new price target of EUR 18 on the Bank of Cyprus shares, 2 euros better than the EUR 16 per share targets issued two days earlier by Citigroup and Deutsche Bank.

Bank of Cyprus also left behind Marfin Popular Bank, which gained 0.70% on the day to EUR 8.64 and is still way off its all-time high of EUR 8.90 while Hellenic Bank gained 2.4% on the day to EUR 3.42.

[Sotos]

How will the banks benefit from Euro? I thought they would lose money by not be able to gain on the exchange rates.

[Strahd]

The main income of Banks is interest rates and investments. Beeing part of the eurozone means that they will be able to invest in europe with cypriot money without having to change it...

[observer]

... and when prices start rising, as they did with every other country that switched to the Euro, I wonder how long it will be before the GCs start up their usual cry of 'we were forced into signing it'.

[observer]

Straws in the wind ... from Cyprus Mail of Fri, 8 June:

Now comes concrete evidence of the effects of this shortcoming, with the latest Eurobarometer survey on the euro showing opposition to the single currency almost directly proportional to lack of information. Sixty per cent of Cypriots still feel they are not properly informed about the changeover, with 53 per cent opposing the currency and a staggering 83 per cent convinced they will be short-changed by the switch.

[EPSILON]

... and when prices start rising, as they did with every other country that switched to the Euro, I wonder how long it will be before the GCs start up their usual cry of 'we were forced into signing it'.

The increase of prices ae faced usually in countries where the local currency is weaker than Euro.(Spain. Iyaly, Portucal, Greece etc). In case where the local currency is stronger than Euro then usually prices remain unaffected by the change of money (Germany)

[Piratis]

I wonder how long it will be before the GCs start up their usual cry of 'we were forced into signing it'.

We never do that unless when we are in fact forced. E.g. when they say "sign this otherwise we will keep you as slaves, ethnically cleanse you or violate your human rights". How is the adoption of Euro forced on us??

[observer]

Well, if the poll is right and 53% oppose the Euro it seems as though it is being forced upon 53% of you.

[Piratis]

Well, if the poll is right and 53% oppose the Euro it seems as though it is being forced upon 53% of you.

You can then say that the government forced something on the people, but not that Cyprus was forced to sign something.

However I believe that by the end of the year most people will support the Euro.

Also, if this was something that people felt strongly about, then they could easily stop it. There are cases where the residents of single villages have forced the government to change decisions via protests.

However I don't see anybody protesting against the Euro, so thats why I believe that the majority of people will approve it by the time it will be introduced. As the article says the rejection is more associated with luck of information rather than anything else.