ATHENS Shares in the Athens Stock Exchange suffered huge losses to reopen today after five weeks of closure, on the first opportunity for investors from June to react to the latest economic crisis. After a dramatic collapse at the start of the day, finally closed with a fall of 16.23%.
In the early stages of negotiation, the overall index came to plummet nearly 23%, but almost an hour later, the fall was attenuated to 21% and at the end of the day, to 16.23%.
The banking stocks were the hardest hit, reaching or approaching the daily limit losses 30% in the first 45 minutes of trading.
Earlier, the Securities Market had given final green light to the reopening after 26 closed working hours, although it banned short sales.
The Commission held 30% margin of fluctuation permitted without any intervention.
“A step towards normalization”
President of the Commission, Kostas Botopoulos, told local television Skai featuring in the first days of trading have many losses.
Analysts expected a sharp decline given that operations national, private and institutional investors are subject to severe restrictions because capital controls remain in place.
Foreign investors have unlimited room for negotiation, while national one can only be purchased with remnants have in their brokerage accounts, or through a new special bank account opened for this purpose.
The national shall not have, however, funds that have in their regular bank accounts, since they are subject to the corralito, which prohibits transactions abroad than commercial.
The reopening of the Stock Exchange after a month is “a step towards normalization” Botopulos said, speaking to the public television.
Botopulos was confident that “a few weeks” are completed to lift restrictions and has been achieved “full liberalization” of the business.
The last session Exchange took place on June 26, a day when the index ended 797.52 points. The trading week had ended with gains of 16% for the main index.
Negotiations
Greece is involved in intense negotiations with creditors to negotiate terms a large rescue package with a view to an agreement in the next two weeks.
Negotiators from the EU and the IMF call for more rapid cutbacks in early retirement plans provided by the government, and stricter measures in a program of payment of back taxes.
The Greek prime minister, Alexis Tsipras, faces opposition within the new rescue his leftist party Syriza could force him to call early elections in the coming months .
Agencies EFE and AP .
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