Tuesday , April 23 2019
Home / News / Economy / (UPD) Athens Stock Exchange Down Despite Eurogroup Deal

(UPD) Athens Stock Exchange Down Despite Eurogroup Deal

The Eurogroup meeting is over, Greece is saved. So why does the Athens Stock Exchange experienced bad day? Why did the General Index plunged below the 800 units, and recorded a 3.47% and banks went down -10%? It is because of this International Monetary Fund report claiming that Greece may need further aid. The IMF estimates that an additional – the third – loan worth 50 billion euro may be needed in 2014. Of course, one should ask “What are 50 billion euro in comparison to 240 billion of 1st and 2nd bailout?”. A bag of peanuts… but this IMF report triggers uncertainty about the Greek debt sustainability. Furthermore the IMF report forecasts the recession in -6.1% in 2012 and 4.3% in 2013. A thin growth of 2% in 2014. These forecasts are based on the assumption that Greece will fulfil all the conditions of the new loan agreement. 

             IMF Scares the ASE

With a 2% decline ASE reacts in IMF report, that Greece may need further aid, which published after Eurogroup’s decisions.

The banking index declines up to 7.7%, after the bigger haircut decided (53,3%), just a few days before the government sent a formal invitation to private Greek bond holders to participate to the PSI.

“The agreement of the euro area for the new rescue package for the Greek economy will change the sentiment in Athens for a considerable period, while waiting for today to evaluate the individual terms of the agreement by investors,” says Marfin Analysis.

“After a long wait for a final agreement, European finance ministers approved the terms of a fresh aid package for Greece and the country agreed the terms of a deal with its private debt holders. A positive opening is expected today for the domestic market”, said Beta Securities.

On the board, the General Index stands at 808.41 points down 2.10%. The index was declining  up to 2.57% at 804.49 points earlier, despite gains 0.93% in the first minutes of trading.

The banking index looses 6.98% at 467.01 points, while the shares of Piraeus Bank (-9,20%), Attica Bank (-7,75%), TT ( -7.68%) and Alpha Bank (-7,73%) are under pressure. NBG΄s stock traded down 7.09% to 2.74 euros.

So far the trading volume reaches 34.74 million units worth 47.5 million euros, while 84 shares trade down, 63 up and 20 remain unchanged. (Capital.gr)

PS I think I will still wait for a while until I throw all my savings in to the Greek Economy, as FinMin Venizelos urged me to do.

Check Also

US to end Iranian oil sanction waivers for Greece, China, Turkey etc

Oil price jumps sharply today on news that US is preparing to stop all Iranian …

One comment

  1. Europarliamentarians? possible. Transportation costs are so high lol