The General Index of Athens Stock Exchange recorded the largest percentage rise in the last 12 months on Tuesday, amid expectations for the smooth disbursement of the fifth instalment and a new aid loan to Greece.
After a prolonged period of weakness that the investing sentiment had being carried by hearsay and public statements, the domestic market reacted violently upwards, as an agreement between the Greek government and the troika is in the offing, regarding the measures of the medium-term fiscal program.
Foreign press contributed to the reversal of the sentiment, reporting that Germany is likely to abandon its proposal of Greek debt restructuring that faced ECB strong opposition. This development is estimated to increase the possibilities of a new aid loan to Greece.
The improved sentiment was reflected on the narrowing of Greek bond spreads and CDS, which retreated by 30 and 40 basis points respectively.
"There is a lot of joy in the market today," an analyst told Dow Jones Newswires. "This has been the best session we have had in weeks."
Ask-side interest emerged in the largest part of the board, with 129 shares rising, 114 remaining unchanged and only 38 declining.
The General Index ended at 1,309.46 units, up 5.58%, moving into positive territory throughout the trading session. The cumulative losses for the month were reduced to 8.73% from 13.55% at the closure of the yesterday’s meeting.
Banks’ performance has been even more impressive, ending at session’s high of 974.44 units, recording a surge of 10.06%. The cumulative losses for the month were limited to 10.18% from 18.39%.
Trading turnover was significantly increased, exceeding €160m (160.94m), while volume amounted to 48.4 million units.
Bank of Cyprus, MIG, Eurobank and National Bank topped FTSE20, with profits of 17.35%, 14.29%, 10.80% and 10.61% respectively. Mytilineos, Alpha Bank and Hellenic Postbank followed, posting gains of 9.11%, 8.59% and 8.00% respectively. On the other hand PPC and Hellenic Petroleum declined by 2.02% and 0.45% respectively.
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