Athens Stock Exchange Plunges -6.28%

A hurricane hit the Athens Stock Exchange sweeping away stocks of companies and banks. The General Index closed at – 6.28% and 730.33 untis. Banks lost -8.6% where some suffered even two-digit losses.  The concern about the postponement of the Eurogroup meeting and the delay of the 6th tranche layed heavier than the reassuring words of Greek Finance Minister Evangelos Venizelos, that a Greek default is not at the discussion, that Greece will always remain in the euro and that the state has liquidity until Mid-November.

Here is the ASE report from Greek economic news portal Capital.gr

The postponement of the Eurogroup meeting, initially scheduled on October 13, and further delay to approve the sixth instalment, refuels concern to the investment community. Investors expect that the developments would lead, eventually, to a bigger haircut of the Greek debt, which would result in significant losses to bondholders. 

This news flow brings new pressures across the ASE board, as the trading session opened with heavy losses, aligned with the strongly negative sentiment in international bourses (DAX loses 3%). Soon, the pressures that focused on the banking sector enhanced so that the General Index records losses of 5.5%, below 740 units. The domestic market’s capitalization has now fallen below €30 billion. 

Banks lose 8.6%, while big caps post losses of 6.5%, trading below 300 units. The trading turnover is increased, currently at €20.5 million. 

Alpha Bank, Eurobank and Piraeus Bank post double-digit losses, while National Bank’s losses exceed 8%. The valuation of shares is frustrating. National Bank is at €2.2 billion, while Bank of Cyprus has fallen below €1 billion. A total amount of six shares has capitalization that exceeds €1 billion. 

Similarly, OPAP loses 9%, with its capitalization slightly above €2 billion. Bank of America commented in a report that the company’s valuation is overshadowed by the Greek debt problem and concerns about Greece exiting the euro. 

A total amount of 84 shares decline, 7 rise and 21 remain unchanged.

source: Capital.gr