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Greece Market Suffers Another Leading Setback - 04 Aug 2015 23:50


[[html]]Greek financial stocks were the worst hit with Eurobank Ergasius, Attica Bank and Leader Bank, Bank of Piraeus and also the National Bank of Greece were all trading at or around 30 % lower - the everyday volatility limit. Similar losses were found in additional stocks outside the banking business also.
<br><br>The stock market ended Friday unofficially 16.2 % lower, as per a Reuters report.
<br><br>To make matters worse, an economic sentiment index for Greece reach its lowest level since October 2012 in July with funds controls and political uncertainty weighing on sentiment, in line with the IOBE think-tank that ran the study.
<br><br>Ahead of the much-anticipated open, dealers were bracing themselves for a day of "losses and unpredictability."
<br><br>Greek dealers told Reuters on Saturday that they expected a torrid evening of losses when the stock market opened. Takis Zamanis, chief trader at Beta Investments, told the news agency that "the chance of finding even one reveal rise in tomorrow's program is virtually no."
<br><br>Meanwhile, the chairman of the Hellenic Capital Markets Commission told CNBC prior to the open that his commission might monitor the market closely on Friday.
<br><br>"We are not participants in the market, we have been the managers and we are waiting to see what occurs," Kostas Botopoulos told CNBC Europe's "Squawk Box" Friday.
<br><br>He stated there would not be any state intervention into the marketplace, stating: "We Are planning to view when it'll strengthen, at which prices, and exactly what the perception of the Greek marketplace is from domestic and international traders."
<br><br>Concentrate for the evening is likely to be on the deficits among Greek financial stocks, which represent around one-fifth of the main Athens catalog. Restrictions have already been set in place to stem capital flight, nonetheless.
<br><br>Craig Erlam, senior industry analyst at money trading platform OANDA, mentioned the banks had been "hit drastically from the events of the year and now must be recapitalized in at the least."
<br><br>The rules
<br><br>Restrictions that represent the continuous money controls on banks that are Greek that restrict withdrawals will be faced by local investors. A week ago, this means that national investors cash they have to give or may just buy shares with fresh funds from overseas, Reuters noted. They also can buy shares with money originating from rewards or security sales or funds remaining using their security businesses.
<br><br>Overseas traders may trade freely, yet.
<br><br>The re open employs an extended period of fiscal uncertainty in Portugal. The stockmarket close when it looked increasingly likely that Greece was about to go bankrupt and abandon the euro zone when capital controls were imposed on banks at the end of June.
<br><br>An eleventh-hour deal between the Greek authorities and lenders over a third bailout program for Greece worth 86 billion pounds was consented, nevertheless, pulling the country back from the brink of an unparalleled "Grexit" from the one currency partnership. Banks then reopened on July 20.
<br><br>Read MoreGreece's Tsipras on precarious ground, cautions of elections
<br><br>Even though the finer details of a bail out are still being hammered out between lenders, the state is deemed to have stabilized enough for the stock market to re open. Market experts cautioned that Mon was not unlikely to be a day of losses, yet.
<br><br>"While it would be easy to imply that today's reopening of the Greek stock market is a key step on your way to some kind of normalization, it is likely to be anything but," based on Michael Hewson, leader marketplaces analysts at CMC Markets, who warned of "volatility and losses."
<br><br>Uphill struggle
<br><br>Given that the International Monetary Fund (IMF) - one of the nation 's lenders- has threatened to pull from a third bailout package without debt relief granted to Greece, the bailout it self is looking increasingly precarious. States like Germany battle debt relief for Greece, fearing that it could establish precedence for other indebted euro-zone states.
<br><br>Time is of the essence for Portugal, nevertheless, as it needs a bailout to be concurred (and resources paid) before a 3.2 billion-euro debt-repayment is due to the European Central Bank on September 20.
<br><br>Against this uncertain backdrop, analyst Hewson stated that Greece still faced an uphill battle.
<br><br>"Aside from the fact that we're able to properly see some huge deficits, there is the small thing that not only are the the inner politics in Greece likely to remain challenging it is also prone to be exceptionally challenging to accommodate the positions the divergent positions of the International Monetary Fund and Indonesia on debt-relief, particularly given the closeness of the next debt deadline on the 20th August."[[/html]] - Comments: 0

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