The Greek market moves sharply downwards on Monday, as the General Index appears “trapped” in the debt crisis. The climate is burdened by the intense concern for Italy and the violent widening of bond spreads. Greek banks “lead” the fall with losses of 4%.
The massive selloff of Italian banks on Friday and the convocation of an extraordinary meeting of European leaders by the President of Eurogroup today, refueled speculation that the debt crisis is approaching Italy, forcing European markets and the euro into losses, while peripheral bond spreads rise.
The interest is focused on both today’s meetings, Takis Zamanis, head of trading at Beta Securities told Capital.gr, referring to the meeting of European officials in the morning and the Eurozone FinMins later in the day.
Today’s market reaction reflect both the concern regarding the continue widening of bond spreads and the contagion risk in Italy, Takis Zamanis noted. Therefore, expectations are low for a final solution, so it might be very positive for the market if any development is made, he added.
The analyst also notes that under current conditions, an agreement between the European officials is not an easy case; while 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.
Pegasus Securities anticipates today’s session to be characterized by volatility, “as the market has not yet found the catalysts needed that would effectively assist it in altering its midterm outlook, investors΄ fatigue following a 4-month meltdown is expected to become even more evident as we move towards the heart of the Greek summer.”
On the board, the General Index is at 1,222.62 units, down 2.28%. The turnover stands at €421.67m (with €391.63m on the agreed trade of 10% of OTE to Deutsche Telekom), while a total amount of 87 shares decline, 25 rise and remain unchanged.
Greek banks fall by 4.28% at 879.49 units. Only ATEBank is on green (with profits of 3.26%), while on the other hand, Eurobank and Piraeus Bank drop by 6.01% and 5.05% respectively. Alpha Bank and Bank of Cyprus decline by 4.29% and 4.17% respectively.
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