Mini Crash: Athens Stock Exchange Plunges -6,28%

Athens Stock Exchange suffered a mini crach on Monday, plunged by -6.28%, the General Index fell below 820 units and the banking sector with losses of 15% as Greece’s lenders refused to make any concessions on labour rights ‘reforms’ and junior coalition government partner Democratic Left insists on not voting in favor of the labour package.

 

“A Eurogroup meeting to discuss exclusively the Greek issue is likely to be held via teleconference next Wednesday, should agreement is achieved on Monday’s Euro Working Group. Thursday evening’s Euro Working Group would be adjourned for Monday, allowing time for an agreement between the coalition government’s three party leaders on a number of outstanding fiscal and labour market issues, part of the requirements for a rescue package.During the weekend German Finance Minister Wolfgang Schaeuble rejected another debt restructuring for Greece, saying it’s unrealistic to expect public or private bondholders to take losses on their Greek holdings.

Schaeuble’s comments, made in an interview with German radio Deutschlandfunk broadcast, pour cold water on a report in this week’s Spiegel magazine that Greece’s international creditors recommend a so-called haircut in their latest report on the country’s finances. The Finance Ministry in Berlin declined to comment on the Spiegel article.

According to Beta Securities, the week ended in the ASE with losses for most stocks and with a quite low turnover as a sign of waiting stance ahead of the voting of the austerity package from the Greek parliament. Given that Mr Kouvelis (leader of the Democratic Left party) has not agreed to vote for the labour reforms market will focus on the alternatives that may occur in order Greece to get part or the whole amount of the 31.5bn package. As long as this issue remains vague market may keep a slow pace and low volumes. (Capital.gr)

Further Reading: Bank Recapitalization Rumours Inflict Major Losses in Local Bourse