The General Index of ASE surrendered to uncertainty on Monday, on a day of massive sell-offs, especially in the South European stock markets, due to concern about the contagion of debt crisis to Italy. Greek banks recorded a year low, with losses of 5.84%.
The meetings of European Union executives and Eurozone Finance ministers were at the epicentre of attention, with the market showing quiet early that it had low expectations on their outcome.
The bond spreads of peripheral countries widened sharply since the opening, with Italian, Spanish and Portuguese bond yield recording new highs, while the climate of growing concern dragged the euro below $1.40.
Today’s market reaction reflects both the concern regarding the continued widening of bond spreads and the contagion risk to Italy, Takis Zamanis, head of trading at Beta Securities told Capital.gr. Therefore, expectations for a final solution were low, so it might be very positive for the market if any progress is made, he added.
The analyst also noted that under current conditions, an agreement between the European officials is not an easy case; while during this week starts the announcement of U.S. corporate results and the European bank stress test are expected on Friday. All these maintain the climate of nervousness and anxiety, he concluded.
On the board, the General Index closed with heavy losses of 2.58% at 1,218.88 units, moving in red throughout the trading session, while intraday losses reached 3.41%.
On Thursday, approximately 79.35 million units worth €473.98 million, of which 49 million units corresponding to €391.63 million related to an agreed transaction of a 10% OTE stake to Deutsche Telekom.
A total amount of 104 shares ended in negative territory, 39 rose and 137 remained unchanged.
Banks fell by 5.84% at 865.18 units, recording a year low. Bank of Cyprus and Eurobank dropped by 8.33% and 7.91% at €1.76 and €2.91 respectively, while Marfin Popular Bank declined by 6.90% at €0.54.
CAPITAL
