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Greece Stock Market Suffers Another Major Blow - 04 Aug 2015 13:20

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[[html]]Greek financial stocks were the worst hit with Ergasius, Attica Bank and Alpha Bank, Bank of Piraeus along with the National Bank of Portugal were around 30 percent lower or all trading at - the daily volatility limit. Comparable losses were found in additional stocks outside the financial industry also.
<br><br>The stock market ended Monday unofficially 16.2 per cent lower, as per a Reuters report.
<br><br>There is further bad news for the Greek economy previously, with flash manufacturing PMI figures for Jul. down to 30.2 the lowest reading since Markit started producing datain 1999.
<br><br>To make things worse, an economic sentiment index for Greece hit its lowest level since Oct 2012 with political uncertainty weighing on sentiment and money controls in July, according to the IOBE think tank that conducted the study.
<br><br>Ahead of the much-anticipated open, traders were bracing themselves for a day of "losses and unpredictability."
<br><br>Greek traders told Reuters on Saturday when the stock market opened, that they anticipated a torrid evening of losses. Takis Zamanis, chief dealer at Beta Securities, told the news agency that "the chance of seeing even a single reveal increase in tomorrow's program is almost no."
<br><br>Meanwhile, the chairman of the Hellenic Capital Markets Commission told CNBC ahead of the available that his commission would monitor the market closely on Mon.
<br><br>He stated there would not be any condition intervention into the marketplace, saying: "We Are trying to see when it'll stabilize, at which prices, and what the understanding of the Greek marketplace is from domestic and foreign investors."
<br><br>Concentrate for the day is likely to be on the losses among Greek banking shares, which represent around one-fifth of the main Athens index. Restrictions have already been put in place to stem capital flight, however.
<br><br>Craig Erlam, senior market analyst at money trading system OANDA, said the banks had been "reach substantially by the events of this year and now have to be recapitalized in at least."
<br><br>The rules
<br><br>Limitations that reveal the continuing money controls on banks that are Greek that restrict distributions will be faced by neighborhood traders. A week ago, this means that domestic investors funds they must hand or may only buy shares with new funds from overseas, Reuters noted. They also can purchase shares with cash staying using their protection businesses or money via dividends or protection sales.
<br><br>Overseas traders may trade freely.
<br><br>The re-open uses an extended period of fiscal uncertainty in Greece.
<br><br>An eleventh-hour deal between the Greek government and lenders on a next bailout plan for Greece worth 86 million dollars was consented, however, pulling the country back from the point of an unparalleled "Grexit" in the single currency union. July 20 was then re opened on by banks that were Greek.
<br><br>The Tsipras on unstable ground of read MoreGreece, warns of elections
<br><br>Industry experts warned that Friday was not unlikely to be an evening of losses, however.
<br><br>"While it would be easy to imply that today's re opening of the Greek stock market is a key step traveling to some type of normalization, chances are to be anything-but," based on Michael Hewson, leader marketplaces analysts at CMC Markets, who cautioned of "volatility and losses."
<br><br>Uphill battle
<br><br>Given that the International Monetary Fund (IMF) - one of the country's lenders- has threatened to pull out of a third bailout package without debt-relief granted to Portugal, the bailout itself is looking increasingly precarious. Countries like Germany battle debt-relief for Greece, fearing that it could set precedence for other indebted euro zone countries.
<br><br>Time is of the essence for Portugal, however, as it needs a bail out to be concurred (and funds paid) prior to a 3.2 billion euro debt repayment is due to the European Central Bank on September 20.
<br><br>Against this kind of uncertain backdrop, expert Hewson stated that Portugal still faced an uphill struggle.
<br><br>"A side from the truth that we could properly see some big losses, there's the small matter that not simply are the internal politics in Greece likely to remain tough it is also likely to be extremely problematic to reconcile the jobs the divergent positions of the IMF and Germany on debt relief, particularly given the proximity of the next debt timeline on the 20th August."[[/html]] - Comments: 0


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