EUROZONE-GREECE/STOCK MARKET Greek banking stocks plunge again as debt crisis dominates

Record ID: 145192

  • Title: EUROZONE-GREECE/STOCK MARKET Greek banking stocks plunge again as debt crisis dominates
  • Date: 4th August 2015
  • Summary: ATHENS, GREECE (AUGUST 4, 2015) (REUTERS) VARIOUS OF THE PARTHENON EXTERIOR OF GREEK STOCK EXCHANGE STOCK EXCHANGE SIGN READING (English): "HELLENIC EXCHANGES" VARIOUS OF SHARE PRICE TICKER VARIOUS OF ANALYST AT MERIT SECURITIES, NIKOS KAFKAS, READING A BOOK (SOUNDBITE) (Greek) MERIT SECURITIES, ANALYST, NIKOS KAFKAS, SAYING: "I think the opening was somehow expected for a
  • Embargoed: 19th August 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVAA0BHI1KDWTDD9DNNY7XYTIT8A
  • Aspect Ratio: 16:9
  • Story Text: Greece's banking stocks plunged for the second day in a row on Tuesday (August 4), dragging the main Athens index down and reflecting the country's continuing financial and economic woes.
    The banking index, comprising the four major lenders, was down 29.2 percent, managing to keep above the 30 percent daily loss limit at which trading is halted. It hit the limit on Monday (August 3).
    The overall Athens General Index was down around 4 percent after opening higher. Some non-financial stocks gained, such as gaming group OPAP and Aegean Airlines.
    The Athens index lost 16.2 percent on Monday, the worst fall on record, wiping out nearly 8 billion euros of market value as investors worried about a new bailout from the European Union and reacted to Greece's worsening economy.
    Analyst Nikos Kafkas said a drop had been expected when trading resumed after having been suspended for five weeks.
    "I think the opening was somehow expected for all the sectors - including the banking sector which closed at the limit down - and it seems that today it will be the same for obvious reasons. And also for the rest of the shares which showed quite a good performance during the day. Many of them regained more than half of their loses and at the moment, I think that brings us hope," he said.
    The suspension was part of capital controls imposed to stem a debilitating outflow of euros that threatened to cause a banking collapse and force the indebted country out of the eurozone.
    Kafkas said he believed the rout would end soon end.
    "Already today many sectors are rising and this brings us hope. I think that in the next couple of days it will stabilise and depending on the political developments and the country's economy it (the stock market) will improve," referring to ongoing talks between Greece and its creditors.
    Kafkas also added that restrictions imposed on Greek investors were not fair.
    "It is completely unfair, it is illegal, it's not within MIFID (Markets In Financial Instruments Directive). I understand the panic that existed in the banks which led to these restrictions for the Greeks, but I hope that they will be in place only for August," he added.
    The bailout, worth up to 86 billion euros ($94.42 billion), needs to be settled by August 20 if Greece is to pay off debts of 3.5 billion euros to the European Central Bank that matures that day.
    Walking in Syntagma Square, civil servant Dimitris Nasis said the drop had been expected.
    "It was expected that it would have this downward course. But step by step and with an agreement clinched I think - and hope - that the stock market will stabilise and return to normal," he said.
    Musician Julie Vendura pinned her hopes on the government.
    "I think that at this point, the only thing left is for them to make the right decisions because the people have supported them," she said.
    Although Athens is in new bailout talks with its European Union partners the threat of political and economic instability remains.
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