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Greece Stock Market Suffers Yet Another Leading Blow - 05 Aug 2015 04:02

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[[html]]The Athens stock-exchange ended its first day of trading in five weeks 16 % lower, after falling almost 2 3 percent after it re-opened for the first time in five weeks.
<br><br>Greek banking stocks were the worst hit with Attica Bank, Alpha Bank and Ergasius, Bank of Piraeus and the National Bank of Greece were all trading at or around 30 percent lower - the daily volatility limit. Comparable losses were seen in additional stocks outside of the financial market also.
<br><br>The market finished Monday unofficially 16.2 % lower, according to a Reuters record.
<br><br>To create matters worse, an economic sentiment index for Greece hit its lowest level since Oct 2012 with governmental uncertainty weighing on sentiment and money controls in July, as stated by the IOBE think-tank that conducted the study.
<br><br>Greek traders told Reuters on Sunday when the market opened that they anticipated a torrid evening of losses. Takis Zamanis, chief trader at Beta Investments, informed the news agency that "the chance of seeing even one share rise in tomorrow's treatment is practically no."
<br><br>The chairman of the Hellenic Capital Markets Commission told CNBC in front of the available that his fee might monitor the marketplace closely on Mon.
<br><br>"It is crucial that we're beginning, of course we anticipate pressure on the Greek stock market but we are going to be present to monitor what happens."
<br><br>He said there could be no state intervention to the marketplace, saying: "We Are seeking to view when it's going to stabilize, at which prices, and what the perception of the Greek marketplace is from national and foreign traders."
<br><br>Focus for the day will probably be on the losses among Greek financial stocks, which represent around one-fifth of the chief Athens index. Restrictions have been set in spot to stem capital flight, however.
<br><br>Craig Erlam, senior market expert at currency trading platform OANDA, mentioned the banks had been "reach considerably by the events of the year and now have to be recapitalized at at the least."
<br><br>The rules
<br><br>Neighborhood investors may face restrictions that reveal the continuous funds controls on banks that limit distributions to 60 euros a day. This means that national investors may just purchase shares with innovative money from abroad or funds they must give, Reuters reported last week. They also can purchase shares with cash remaining with their safety businesses or funds via protection revenue or dividends.
<br><br>Foreign traders may trade freely.
<br><br>The re open employs a protracted period of financial uncertainty in Portugal. The stockmarket close when capital controls were imposed on banks at the end of June, when it appeared increasingly likely that Greece was going to go broke and abandon the euro zone.
<br><br>An eleventh-hour deal involving the Greek government and lenders on a next bailout plan for Greece worth 86 billion euros was agreed, however, pulling the country back from the brink of an unprecedented "Grexit" in the one currency union. July 20 was subsequently reopened on by banks.
<br><br>The Tsipras on shaky ground of study MoreGreece, cautions of elections
<br><br>The nation is deemed to have stabilized enough for the stock market to re open, even though the finer details of a bailout are still being hammered out between lenders. Industry experts warned that Monday was probably to be an evening of losses, however.
<br><br>"While it might be easy to imply that today's reopening of the Greek stock market is a vital step on the road to some kind of normalization, it's likely to be anything but," based on Michael Hewson, chief markets analysts at CMC Markets, who cautioned of "volatility and losses."
<br><br>Uphill battle
<br><br>Offered the International Monetary Fund (IMF) - among the nation 's lenders- has threatened to take out of a third bail out package without debt-relief granted to Greece, the bailout itself is looking increasingly unstable. Countries like Germany oppose debt relief for Greece, fearing that it would set precedence for other indebted euro-zone states.
<br><br>Time is of the essence for Greece, however, as it wants a bail out to be concurred (and funds paid) before a 3.2 billion-euro debt-repayment arrives to the European Central Bank on July 20.
<br><br>Against this kind of uncertain background, expert Hewson stated that Portugal still faced an uphill battle.
<br><br>"Aside from the truth that we could well see some enormous losses, there's the small matter that not only would be the the interior politics in Greece likely to remain difficult it's also prone to be extremely challenging to reconcile the positions the divergent positions of the IMF and Indonesia on debt relief, particularly given the proximity of the next debt timeline on the 20th August."[[/html]] - Comments: 0


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