The Athens Stock Exchange lost 16.23% Monday on its first day of reopening after being closed for five weeks, weighed down by uncertainty over the negotiations of a third bailout for Greece.
Investors punished again Hellenic companies. Photo: Reuters
The Athens Stock Exchange lost 16.23% Monday on its first day of reopening after being closed for five weeks, weighed down by the uncertainty on the negotiations of a third bailout for Greece.
The Athex index, which fell as 22.82% in the first exchanges of the day, closed at 668.06 points. The last big drop in this indicator goes back to 1987, with a loss of 15.3 percent.
The disaster affected mainly banks, which lost around 30 percent. This reflects the great vulnerability of the sector, which urgently needs a recapitalization after the withdrawal of more than 40,000 million euros since December.
The market expected a difficult recovery after five weeks of closure.
After the difficult agreement reached on July 13 between Athens and creditors, negotiations have resumed “and going in the right direction,” EU Commissioner for Economic Affairs, Pierre Moscovici, said on Monday the Greek newspaper Ethnos.
“We did not expect it to be different on Monday,” said analyst Manos Hatzidakis of Beta Securities, questioned by Skai radio.
The president of the Commission of the Markets, Konstantionos Botopoulos They recommended “wait until the end of the week to see more serenely how this reopening will take place”.
With limitations
The trading resumed with limitations for local investors that can not finance the purchase of securities with money from their bank accounts in Greece, subject to the yard into force. Instead, they can use their accounts abroad or transact in cash.
On the other hand, foreign investors, who account for about 60% of the market capitalization on the Athens Stock Exchange, are not affected by these restrictions.
At its last meeting on June 26, before closing, the Athenian Stock Exchange had ended up at 797.52 points. That night, Prime Minister Alexis Tsipras left guard called a referendum on the new austerity measures demanded him to his country.
Tsipras hoped the referendum would allow him to leave the alley where they were negotiations with creditors (EU and IMF) to submit the agreement to a referendum on financing.
At the risk of bankruptcy of banks, the government announced capital controls, the closure of banks They -abrieron again on 20 July, and the Stock Exchange.
“no” to the proposal won largely on July 5.
Greece and its creditors were concluded on 13 July an agreement to a third country assistance plan, the details of which are being negotiated for a week by the Greek government and its creditors in Athens.
Even before its closure on June 26, the stock market Greek was one of the smallest in market capitalization.
Even many investors have left the market this year, while that confidence fell after the elections of January last which won the ruling leftist party Syriza, Alexis Tsipras.
lose millions
With so scandalous fall of the Greek Stock Exchange on Monday, major companies lost millions of dollars in value in the market within minutes.
“There is a sense of panic,” said Evangelos Sioutis, financial analyst and head of Capital Guardian Trust.
He commented that some traders are selling shares only to have cash because there is little liquidity in the Greek economy. “There are no buyers. The picture is not clear. “
Greece is expected to fall back into recession in 2015, shortly after leaving six years of contraction, due to the effects of capital controls and months of uncertainty on the country’s future. (AFP, AP)
Fall Greek bursátile not affect other markets
The main European stock markets were not impressed by the historic drop in the square of Athens and nearly all closed with gains Monday.
The London Stock Exchange had a slight drop of 0.11%, so the FTSE-100 index of top titles fell to 6688.62 points at the close.
In Frankfurt, the Dax index of 30 stocks gained 1.19% to 11,443.72 points.
The Parisian square also started the week on a positive note (+ 0.75%). The CAC 40 index rose to 5120.52 in its fifth consecutive session higher.
Madrid was no exception, and the Ibex 35 gained 0.76% to 11,265.8 points.
Rather, Oil
The shares closed with losses on Monday in New York Stock Exchange, dragged down by the energy sector after a further decline in oil prices and manufacturing data in China, which totaled concern over a weaker growth in the second world economy. The Dow Jones industrial average lost 0.52%, to 17598.20 points, while the S & P 500 fell 0.28%, to 2098.04 units. The NASDAQ Composite lost 0.25% to 5,115.382 units. Oil prices fell on Monday, pressured by fresh signs of a growing oversupply and data that stressed the slowing demand in China.
The Mexican Stock Exchange reversed its direction after losses last sessions and managed to close with a gain of 0.34% for the release of economic data global.De level Thus, the main stock indicator, the Index of Prices and Quotations, started positively August, when placed in 44,903.95 units. (AFP and Reuters)
valores@eleconomista.mx
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