Caution Prevails in Greek Market But Volatility Seen Higher
Athens Stocks move nervously on Wednesday, amid S&P’s announcement that it keeps Greece’s rating on negative creditwatch and developments in Libya.
The General Index attempts to reverse into positive territory, as it has already limited its early losses of 2.2%. Banks move between gains and losses, despite losses of 2.7% earlier.
Analysts attribute the sharp decline mood at the session’s opening to the growing concern worldwide caused by rising oil prices, which dragged Wall Street and Asian markets down, while it continues to weigh on European markets.
Uncertainty was also triggered by Standard & Poor’s announcement that it keeps Greece’s ratings on creditwatch with negative implications, as it remains "uncertain about the ultimate nature, and impact, of the proposed key features of the European Stability Mechanism".
Given the fragile sentiment in the European markets recently, S&P’s announcement is expected to maintain the intensive nervousness in the domestic market, while it would lead to the widening of Greek government bond spreads, according to analysts.
Pegasus Securities expects developments in Libya to weigh heavily on the market’s course, “with the absence of positive domestic catalysts not providing the General Index with the opportunity to differentiate its course.”
Across the board, the General Index is at 1575.89 units, down 0.25% in a turnover of EUR 52mn. A total amount of 22 shares rise, 61 decline and 34 remain unchanged.
Banks post marginal profits of 0.12%, at 1355.86 units. Eurobank stands out, with gains of 2.4%, while Hellenic Postbank rises by 0.58% ATEBank falls by 2.56%, while National Bank, Alpha Bank and Bank of Cyprus decline by 0.6%, 0.4% and 0.37% respectively.
(capital.gr)
