The General Index of ASE recorded a second low for the year on Wednesday, as it ended at session’s low.
All FTSE20 shares -besides unchanged Coca Cola 3E- ended in red, while the banks’ losses reached 9.47% for the last three sessions. On Wednesday, banks fell by 4.69%, at 938.44 units.
Following last week’s profits, releasing of the fifth aid tranche and decisions within June are necessary in order to reverse the market trend, according to Merit Securities. It comments that the agreement won’t be easy to achieve as it must overcome many reactions.
Moreover, the agreement between the Greek government and the Troika on basic principles of the medium-term program is something that many investors awaited in order to proceed with investing moves. But, possible political instability and delays in voting of the program could affect negatively the domestic market, Merit noted.
A significant catalyst could be the commitment of several powerful European officials to help Greece despite the high cost. Avoiding a domino effect, which could spread to several economies of the Eurozone is a strong argument that could convince those who oppose against a new bailout plan, according to Merit.
In this context, Merit adds, bank shares will continue to be volatile for the rest of the month, while a retrace to new lows is possible.
Across the board, the General Index ended at session’s low, at 1,258.97 units, recording a fall of 2.94%. Approximately 23.14 million units worth €79.5 million were traded on Thursday, while a total amount of 95 shares declined, 34 rose and 151 remained unchanged.
ATEbank and Alpha Banks suffered the heaviest pressures in FTSE20, posting losses of 9.09% and 7.65% respectively. Ellaktor and Marfin Popular Bank dropped by 6.77% and 6.06%, while Viohalco and Titan declined by 5.93% and 5.23% respectively.
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