Greek Stocks could not put an end to the downward streak, as the General Index declined for an 11th consecutive session on Monday, with weak trading and thin turnover.
In the wake of the bank stress test results and amid expectations for faster developments in the sector, investors remain cautious, according to market analysts. Investors also focus on the preparations ahead of the European Union Summit on Thursday.
The weak-trading session would probably remain the main market characteristic in the coming days, they explain, as each increase of the turnover would intensify fluctuations. Banks would remain at the centre of attention, while the voluntary participation of private investors in the support package to Greece is still a puzzle.
Despite the short-term breathing that the stress tests results provided, the situation in the banking sector is still fluid and there still need for new capital increases or merger, said Merit Securities.
Merit considers the stress test as successful “on first reading”, and notes that under the worst case scenario all Greek banks passed the threshold of 5% of Core Tier 1. In contrast, it caused concern that it wasn΄t included any provision for a final solution to the Greek debt problem.
The attempt to reach to a solution for the settlement of Greek debt ahead of the European Union Summit next Thursday may ease the selling pressures in the domestic market, said Pegasus Securities.
On the board, the General Index ended at 1,171.10 units, with minor losses of 0.44%, despite early gains of 1.38%. Approximately 24.98 million units worth €62.21 million were traded on Monday, while a total amount of 84 shares declined, 51 rose and 145 remained unchanged.
Banks moved into a margin of 31 units or 3.88%, before ending at 798.00 units with minor profits of 0.38%. Bank of Cyprus and ATEBank rose by 3.97% and 3.51%, while Alpha Bank and National Bank gained 1.37% and 1.19% respectively.
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