Enthusiasm gave way to concern,as the General Index of ASE was forced to losses, despite early profits. Rumours regarding Italian banks and the forthcoming voting for the medium-term program had been at the centre of attention. Volatility and thin turnover were the key characteristics.
The session opened in a positive environment, as early trading pushed General Index higher due to the overall sentiment of relief, after the European leaders reached an agreement on the Greek issue. But later, nervousness dominated, dragging the General Index into negative territory, while turnover remained low.
The temporary suspension of trading of Italian banks because of high volatility affected the sentiment and caused momentary panic in the markets. On Thursday, Moody’s rating agency placed 16 Italian banks on review for a possible downgrade, but rumours that several Italian banks wouldn’t pass the stress tests or Italy’s credit ratings could be downgraded triggered volatility.
Following yesterday’s agreement, things seem to get on track, as every indication leads to a rollover of Greek debt, Charalambos Angeletopoulos, head of business development at Prelium Securities, told Capital.gr.
The government’s agreement with the troika on the medium-term program is also positive, said Charalambos Angeletopoulos, adding that only its –most probable- passing is now pending.
“The disbursement of the fifth instalment and the placing of a second rescue package are of crucial importance, as the Greek default risk, in the full meaning of the term, moves away for the next 2 years”, he estimates.
Moreover, he noted that there is room for positive reversal of the sentiment in the Greek stock marker, in case there is political willingness and national consensus in the implementation of the –maybe unfair but imperative- measures.
Across the board, the General Index ended at 1,232.60 units, with losses of 0.74%. On Friday, approximately 20.6 million units worth €59m were traded, while a total amount of 71 shares rose, 66 declined and 143 remained unchanged. The Index recorded losses of 1.71% for week.
Banks posted minor losses of 0.39% on Friday, at 921.40 units, recording only one upward meeting this week. Cumulative losses for week amount to 4.1%. Marfin Popular Bank suffered losses of 1.64% while Hellenic Postbank declined by 1.49%. On the other hand Proton Bank jumped by 7.84%, ATEBank and Alpha Bank gained 2.54% and 1.26% respectively.
