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Greece Stock Market Suffers Another Important Blow - 04 Aug 2015 03:29


[[html]]The stock-exchange ended its torrid first day of trading in five weeks 16 percent lower, after it re-opened for the first time in 5 weeks after falling almost 2-3 per cent.
<br><br>Greek financial stocks were the worst hit with Attica Bank, Leader Bank and Ergasius, Bank of Piraeus along with the National Bank of Greece were all trading at or or about 30 % lower - the daily volatility limit. Similar losses were seen in other stocks not in the financial market also.
<br><br>The market finished Mon unofficially 16.2 percent lower, as per a Reuters record.
<br><br>There was further bad news for the Greek market before, with flash manufacturing PMI figures for Jul. down to 30.2 the lowest reading since Markit began producing datain 1999.
<br><br>To create things worse, an economic sentiment index for Greece reach its lowest level since Oct 2012 with funds controls and governmental uncertainty weighing on sentiment in July, based on the IOBE think tank that conducted the survey.
<br><br>Greek traders told Reuters on Saturday that they expected a torrid evening of deficits when the market exposed. Takis Zamanis, chief trader at Beta Securities, informed the news agency that "the probability of seeing even a single discuss increase in tomorrow's session is almost zero."
<br><br>"It is very important that we're beginning, of course we expect pressure on the Greek stock market but we'll be there to track what happens."
<br><br>He mentioned there could be no condition involvement to the market, declaring: "We Are seeking to view when it's going to stabilize, at which prices, and exactly what the understanding of the Greek market is from domestic and international traders."
<br><br>Focus for the evening probably will be on the losses among Greek financial shares, which constitute around 20 percent of the principal Athens list. Limitations have already been put in spot to stem capital flight, however.
<br><br>Craig Erlam, senior industry analyst at currency trading platform OANDA, said the banks had been "reach well by the events of the year and today must be recapitalized in at least."
<br><br>The rules
<br><br>Local investors may face constraints that reflect the continuous money controls on banks that are Greek that limit distributions to 60 euros a day. Last week, this means that national investors funds they have to give or can just buy shares with innovative money from abroad, Reuters reported. They can also buy shares with money coming from dividends or security sales or cash staying using their protection companies.
<br><br>Foreign investors may trade freely, nevertheless.
<br><br>The re-open comes after a protracted amount of financial uncertainty in Portugal. The stock market close when capital controls were imposed on banks at the end of June, when it looked increasingly likely that Greece was about to go broke and abandon the euro zone.
<br><br>An eleventh-hour deal between the Greek government and lenders over a next bailout program for Greece worth 86 billion euros was agreed, however, pulling the country back from the brink of an unparalleled "Grexit" from the only currency partnership. Banks that were Greek then reopened on July 20.
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<br><br>The state is deemed to have stabilized enough for the stock market to re-open, although the finer details of a bailout are still being hammered out between lenders. Industry experts informed that Mon was likely to be an evening of losses, yet.
<br><br>"While it will be easy to suggest that today's re-opening of the Greek stock market is an essential step on the road to some type of normalization, it's likely to be anything-but," based on Michael Hewson, chief markets experts at CMC Markets, who informed of "unpredictability and losses."
<br><br>Stiff battle
<br><br>Provided that the International Monetary Fund (IMF) - among the nation's lenders- has threatened to pull from a third bailout package without debt relief granted to Portugal, the bailout it self is looking increasingly precarious. Nations like Philippines battle debt relief for Greece, worrying that it would set precedence for other indebted euro zone states.
<br><br>Time is of the essence for Portugal, however, as it requires a bail out to be concurred (and funds paid) before a 3.2 billion euro debt repayment is due to the European Central Bank on September 20.
<br><br>Against such an uncertain background, analyzer Hewson stated that Greece still faced an uphill challenge.
<br><br>"Apart from the truth that we could properly see some large losses, there's the small matter that not only are the the inner politics in Greece likely to remain tough additionally it is prone to be extremely problematic to accommodate the positions the divergent positions of the International Monetary Fund and Germany on debt relief, particularly given the closeness of the following debt deadline on the 20th August."[[/html]] - Comments: 0

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