The General Index of ASE appears “exhausted” on Wednesday, after the intense effort to limit losses yesterday and ahead of the upcoming EU Summit, moving into negative territory in very thin turnover.
The downgrade of Ireland’s ratings by Moody’s at junk level weighs on the climate, while after the panic about the crisis contagion in Italy, reports suggest that European leaders would hold an extraordinary meeting again at the end of the week.
What is needed is more political and less economic analysis as currently the market hangs on political developments, Vassilis Sotiropoulos, analyst at Guardian Trust Securities, told Capital.gr.
The market, “disappointed” for a long time, seeks for support in developments like the summit that is said to take place on Friday, he added. However, “we must not forget that market is mainly companies, which should also show ...something in the future”, Vassilis Sotiropoulos commented.
Any sign of change of the scene over time with even a minimal increase in state revenue, deficit reducing and recession decline would stimulate the market, as it always moves faster than the results, the analyst added.
“Volatility is likely to remain evident today as investors digest the negative newsflow of Ireland’s downgrade to Ba1 by Moody’s and the expectation that the upcoming summit this week may hopefully result in more concrete decisions by EU leaders”, said Eurobank Equities in a report.
On the board, the General Index is at 1,207.13 units, down 0.77%, moving in red since the opening. The turnover is at 22m, while a total amount of 60 shares decline, 33 rise and 37 remain unchanged.
Banks post losses of 1.32% at 848.22 units. ATEBank falls by 4%, while Piraeus Bank, and Marfin Popular Bank decline by 2.17% and 1.92% respectively.
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