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Athens Stock Exchange Plunged -6.92% on Referendum

The Athens Stock Exchange suffered heavy losses of -6.92% in the aftermath of the referendum announcement on the loan-agreement on Monday evening by PM George Papandreou. The General Index closed qt 782.65 unit and the total volume was 75.72 million euro. Stocks on the banking sector suffered the heaviest losses of -11%  driving the Greek banks shares to ‘junk papers’. The National Bank of Greece fell -14.53%, the Post Bank -16.11%, the Eurobank -11.76% and the Alpha Bank -11.11%.

heavy losses were recorded also in private companies with Sprider at -29.93%, Imperio -26.53%.

The referendum announcement that could risk the loan-agreement and undermine talks between banks and the EU for the PSI PLUS ( the voluntary participation of private investors in the 50% haircut of Greek bonds) and the unstable political situation in Greece with government party deputies asking PM Papandreou to resign, brought also Stock Exchanges around the world into fall, the EURO itself not exempted. London fell at -2.39%, Frankfurt -3.82% and Paris at -4.36. The Euro is currently at 1.36740 in relation to US Dollar.

Tuesday morning the ASE opened with heavy losses with investors reacting negatively on the referendum announced by Greek prime minister George Papandreou on Monday evening. Half an hour after the opening of the session, the ASE was recording losses of – 6%. At 11:00 local time, the General Index has been down at 755.24 units and -6.60%.

The ASE followed the negative reactions of European Stock Exchanges and Wall Street.

The negative reaction of the ASE was expected as the referendum on the loan-agreement is considered as very ‘risky’ for undermining first of all the PSI PLUS talks between banks and the EU concerning the Greek haircut. Who would accept a haircut on Greek bonds now, when the loan-agreement is at risk to be rejected by the Greeks?

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