ASE’s attempt to reclaim 1,300 units fell prey to the political developments on Friday, as the market was forced into significant losses, declining to new 14-year lows.
With expectations that the meeting of political leaders could bring positive economic developments, the Athens Stock Exchange had clarified its intention to move upwards. The better-than-estimates results of National Bank and the government’s willingness to sell its stake in OTE had paved the way for an attempt to regain the level of 1,300 units.
By the end of the meeting and before any statements by the political leaders, the General Index had been posting profits of 2.84%, soaring from 1.71% in just two minutes, with a sharp strengthening of trading volume. Similarly, banks jumped from 2.32% to 4.39%.
However, the trend reversed to negative right after the disheartening statements of LAOS leader Giorgos Karatzaferis, while there had been no official announcement at the moment.
"There was a big drop in the market, on pretty decent turnover, and we saw the intra-session gains evaporate after this meeting," a local analyst told Dow Jones Newswires.
Political leaders’ failure to reach consensus that would create favourable conditions for finalizing a medium-term plan leads the developments in economy, since the Greece enters a critical period in June with the EU Summit, bank stress tests and troika’s review on the country’s process, said Pegasus Securities in its weekly report.
Across the board, the General Index ended at 1,264.92 units, down 1.71%, after fluctuating within a margin of 73 units of 5.6%.
Banks dropped by 2.27% at 920.41 units, with intraday losses of 4.95% (a new 14-year low).
Approximately 37.91 million shares worth €117.97m were traded on Friday, while a total amount of 92 shares declined, 42 rose and 147 remained unchanged.
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