Business & economy wrap-up from the day before

The Bank of Cyprus (BoC) and Eurobank are well positioned to benefit from a renewed re-rating of Hellenic banking stocks, according to Cyprus-based investment firm Roemer Capital, with the company upgrading the former to a buy recommendation and reaffirming its positive stance on the latter.

The firm said fading geopolitical risks, resilient economic growth in Greece and Cyprus, declining funding costs and the forthcoming transition of Greece to developed-market status should support another phase of outperformance for regional banks.

Roemer Capital said it had reduced its cost of equity assumptions, aligned its forecasts with first quarter 2026 results and extended its valuation horizon to the end of 2027, resulting in significantly higher target prices across the sector.

The investment firm said investors should remain constructive given what it described as a highly favourable risk and reward profile.

The Bank of Cyprus received the most significant upgrade, with Roemer Capital raising its recommendation from hold to buy and identifying it as the strongest capital-return story among the banks under coverage.

Cyprus’ total sales of petroleum products fell by 5.1 per cent in May 2026 compared with the same month last year, even as monthly demand strengthened and the government moved to shield motorists from elevated fuel costs by extending reduced excise duties.

According to figures released on Friday by the Cyprus Statistical Service (Cystat), total petroleum sales reached 127,538 tonnes in May 2026, representing a decline from May 2025.

The annual decrease reflected weaker demand across most fuel categories, the service reported.

The sharpest declines were recorded in kerosene, down 23.6 per cent, followed by asphalt, down 20.8 per cent, heavy fuel oil, down 18.2 per cent, and marine gasoil provisions, down 13.3 per cent.

Extreme heat waves and droughts are increasingly threatening economic growth across the European Union, with the agricultural sector in regions such as Cyprus facing substantial risks from compounding climate shocks, a new study published by the European Central Bank (ECB) has revealed.

The research, which analysed 1,117 regions between 2002 and 2022, developed new climate-augmented models to predict how extreme weather events influence the gross value added per capita across different economic sectors.

Coinciding heat waves and droughts were found to be most frequent in Mediterranean countries, specifically Italy, Spain, Cyprus and Malta, alongside parts of central and eastern Europe, with the frequency of these compounding events rising notably in recent years.

Tototheo Global joint chief executive officer Despina Panayiotou Theodosiou on Friday announced her candidacy for election to the board of governors of the International Propeller Club, Port of Piraeus.

In a statement, she said that her long experience in the maritime sector had shown her the importance of collaborative bodies in bringing people together and supporting dialogue across the industry.

“Throughout my career in the maritime sector, I have had the opportunity to see first-hand the important role that groups such as the Propeller Club play in bringing people together, fostering meaningful dialogue, and building strong relationships across our industry,” she stated.

Logicom Public Ltd shareholders have approved the payment of a €0.10 dividend per share during the company’s annual general meeting.

The dividend, corresponding to 29.4 per cent of the nominal value of the share, had been proposed by the company’s board of directors.

The company said the proposed record date for determining beneficiaries is Thursday, July 9, 2026.

The record date will include transactions carried out by the end of the trading day on Tuesday, July 7, 2026.

As a result, Logicom shares will trade cum-dividend until July 7, while from the start of trading on Wednesday, July 8, they will trade ex-dividend.

Petrolina (Holdings) Public Limited announced on Friday that its financial results for the first half of 2026 are expected to show a significant improvement compared with the corresponding period of 2025.

The anticipated increase in performance relative to the previous year is primarily attributed to the integration of the operations of eWise Cyprus Limited, formerly known as ExxonMobil Cyprus Limited, which took effect from January 30, 2026.

Furthermore, the results have been bolstered by a one-off accounting gain recognised as negative goodwill, reflecting the advantageous valuation secured during the acquisition process, the company stated in a filing to the Cyprus Stock Exchange (CSE).

The company based this positive outlook on the financial data currently available to the group.

Greek lenders, some of which also operational in Cyprus, remain on course for strong growth despite geopolitical tensions in the Middle East and concerns over the tourism season, with UBS saying that resilient tourism trends and continued corporate lending expansion are supporting the sector’s outlook.

In a recently published piece of analysis, the findings of which were shared by Greek business outlet Newmoney, the investment bank said the impact of regional instability on Greece’s economy and banking sector has so far been limited, based on the latest available tourism and lending data.

The assessment draws on weekly international arrival figures at Athens International Airport, which UBS uses as a key indicator for the performance of the Greek tourism industry.

According to data available up to June 8, 2026, international arrivals continue to rise on a seasonal basis, although growth has slowed significantly compared with recent years.

Construction material producer Kythreotis Holdings has warned that its results for the first half of 2026 are expected to be significantly lower than those recorded in the same period last year, as poor weather and higher fuel costs weighed on activity.

In an announcement, the company said the weaker performance was mainly due to a decline in revenue during the first months of the year, which it attributed to unusually rainy weather conditions.

At the same time, the group said higher fuel costs, linked to international energy prices, had also affected its performance.

The warning marks a weaker start to the year for the company, following a stronger first half in 2025, when Kythreotis reported higher profit on the back of increased income from its ready-mix concrete operations.

SquareOne has launched Zoia, a 147-apartment residential development in the Berengaria area of Limassol.

Situated on a former military site, the project features four five-storey blocks with high-end amenities, including a swimming pool, gym, and community management services.

Targeted at investors and owner-occupiers, Zoia offers one to three-bedroom apartments with prices starting at €212,000.

The company projects gross yields between 7 per cent and 8 per cent, supported by a flexible four-year, interest-free payment plan.

Artificial intelligence can write code, create images and suggest solutions, but it cannot dream or replace human judgement, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou told University of Cyprus (UCy) postgraduate graduates on Thursday.

Speaking at the university’s graduation ceremony, Damianou said the rise of AI is no longer a distant or theoretical issue, but one already affecting Cyprus’ economy, labour market, education system and ability to compete for investment and talent.

“The essential question remains the same and more important than ever: how do we ensure that technology serves humans and not the other way around?” he said.

Damianou referred to recent discussions at the G7, where heads of state met senior figures from major AI companies, including OpenAI, Google DeepMind and Anthropic.

Elbridge Investments (Cyprus) Limited announced on Friday the payment of interest for bonds bearing the ISIN code CY0148711019 for the period spanning April 01, 2026, to June 30, 2026.

The interest rate for this specific period has been confirmed at 5.045 per cent.

This figure is calculated using the 12-month EURIBOR of 2.245 per cent, supplemented by a spread of 2.80 per cent.

The record date for the bond issue has been set for July 01, 2026.

The Cyprus Stock Exchange (CSE) announced on Friday that Interfund Investments Plc shares will be moved from the surveillance market back to the alternative market.

This shift comes as the reason for the initial transfer has been resolved following the publication of the company’s annual financial report for the year ended December 31, 2025.

Shares of the company will be traded on the alternative market starting on Tuesday, June 30, 2026, the exchange said.

Andreas Christoforou has been re-elected to the YoungShip International Board and appointed Regional Representative for Southern Europe, bolstering Cyprus’ influence within the global maritime sector.

Previously president of YoungShip Cyprus, Christoforou is recognised for his dedicated leadership in professional development and mentoring. YoungShip Cyprus commended his re-election as a testament to his experience and vision.

This expanded role follows a leadership transition in Cyprus, where Tobias Kreppel assumed the presidency for the 2026-2028 term.