a new aid loan to Greece. The banks lead the reaction with profits of 4.5%.
Yesterday’s downgrade by S&P, ongoing scenarios for a possible debt restructuring and lower than estimated results of Coca Cola 3E are in the centre of attention, while investors also focus on the auction of Greek treasury bills.
Moreover, Dow Jones Newswires reported that Greece expects a new aid package of €60b to cover its borrowing needs stretching 2013, citing statements of a government official. The agreement is expected to be finalized as early as June, however a senior Finance Ministry official denied talks of a new package.
Meanwhile, Goldman Sachs stated that Greece is at a crossroads. The country’s fiscal adjustment has entered one of its politically most sensitive phases, attracting increasing focus by both investors and the official sector involved in the financial support program, according to the firm.
Goldman Sachs sees two possible alternatives for Greece. A partial re-profiling of the existing debt and a ‘top up’ of official funds, potentially through resources raised via the EFSF rather than through each country’s issuance program. However, further conditionality may be required, the firm notes.
“The market is awaiting for the developments”, head of trading at Beta Securities Takis Zamanis said, highlighting the changing of attitude of certain Europeans circles, particularly in Germany.
He noted that the possibility of a new loan, regardless of the conditions, is positive, however the big issues remain, particularly the effectiveness of the country in implementing a policy that would determine a greater debt sustainability.
Across the board, the General Index is at 1,372.36 units, up 1.66%. The turnover stands at €42m, while a total amount of 73 shares rise, 52 decline and 37 remain unchanged.
The banking index moves upwards by 4.45%, at 1,017.19 units, with all of its shares in green. Eurobank and Alpha stand out with profits of 5.90% and 5.52% respectively, while National Bank gains 5.30%.
CAPITAL
