Cyprus Business Now
Starting with the consumer goods market, the latest data from the Consumer Product Price Watch, released by the Consumer Protection Service, highlights a significant uptick in prices. In June, 28 out of 45 basic product categories experienced price increases, with 24 of these rising by less than 3 percent from the previous month. Rising fuel prices in May and June, coupled with higher food inflation, have propelled overall inflation from 2.4 percent in April to 2.9 percent in June. This inflationary trend is most evident in food prices, which surged by 2.0 percent from January to June 2024 compared to the same period last year. Key contributors to this rise include a 4.9 percent increase in agricultural products, a 9.5 percent hike in electricity costs, and an 8.6 percent jump in petroleum products. Particularly notable are the price hikes in vegetables and greens (up by 23.0 percent), vegetable cooking fat (up by 13.7 percent), and frozen molluscs/shellfish (up by 10.4 percent).
Meanwhile, the real estate market in Cyprus, as detailed in the Q2 2024 edition of the Ask Wire Index, displays a mixed but relatively stable picture. Property prices on an annual basis saw apartments increase by 3.5 percent, offices by 1.0 percent, and holiday apartments by 0.6 percent, whereas house and warehouse prices remained stable. Conversely, commercial properties and holiday houses saw slight declines. Rental values showed more pronounced shifts, with apartment rents surging by 5.0 percent and office rents rising by 3.2 percent compared to Q2 2023. On a quarterly basis, apartment rents increased by 1.5 percent, while warehouse rents slightly declined by 0.2 percent, indicating a steady rental market overall.
The Cyprus Stock Exchange (CSE) concluded Friday, July 19, with losses. The stock market experienced a decline, continuing the downward trend of recent sessions. This dip was primarily driven by the pressure on bank shares, which significantly influenced the overall market performance.
At 13:02, the General Index was retreating at 162.95 points, down by 0.95 per cent. Similarly, the FTSE/CySE 20 Index showed a loss of 0.96 per cent, trading at 99.19 points. Concurrently, the value of transactions stood at €151,501, of which €8,159 were bond transactions.
Moreover, all individual stock market indices were down, except for the Hotel sector, which remained unchanged. Investment Companies showed the largest losses, declining by 2.46 per cent, followed by the Main Market with a decrease of 1.24 per cent and the Alternative Market with a minor loss of 0.08 per cent.
In terms of specific securities, Bank of Cyprus attracted the most investor interest, with transactions amounting to €100,944, although its stock fell by 0.95 per cent. Vasilikos Cement Plant followed with €28,065 in transactions, maintaining its value unchanged. Hellenic Bank saw transactions worth €15,775, declining by 0.77 per cent. Demetra Holdings experienced a drop of 2.51 per cent with transactions totaling €6,943, while FROU FROU saw the highest percentage decline, down by 3.40 per cent with transactions amounting to €1,136.