Greek banks suffered severe pressures on Wednesday in the wake of the four-notch downgrade of Portugal’s ratings by Moody’s and amid developments about the fate of the French proposal for the rollover of Greek debt.
Market analysts comment that all indications point that the final agreement will not be easy and it would require a long time until EU leaders bridge the gap of their disagreements and reach an understanding with rating agencies.
UBS analyst Edel Tully said in a report that Portugal’s slide to “junk” category just two months after the country received a bailout package is a reminder that the problem of sovereign debt in the euro area is a long way to a definitive solution.
Merit Securities said in its report that any more delays in decision-making act as a check on maintaining of the upward momentum in ASE. Merit does not anticipate any concrete decisions in the upcoming Eurogroup meeting, and this could prevent the break of 1,340 resistance level, which seems very strong.
It added that if the situation is clarified soon, a mini rally up to 1,390 units is possible. On the other hand, if decisions are postponed until September, the support level of 1,200 units would be tested again.
On the board, the General Index moved into negative territory throughout the trading session and closed at 1,265.78 units, with losses of 1.75% (intraday losses reached 2.25%). Approximately 26.24 million units worth €77.6 million traded on Wednesday, while a total amount of 95 shares declined, 34 rose and 151 remained unchanged.
Banking index posted intraday losses of 5.41%, before ending at 954.44 units, with losses of 4.62% and all of its shares in red.
Viohalco and Coca Cola 3E topped FTSE20 with profits of 1.90% and 1.30% respectively, while only Ellaktor and Hellenic Petroleum followed on positive grounds with gains of 1.21% and 108% respectively.
On the other hand, ATEBank fell by 15.63%. Piraeus Bank and MIG declined by 5.50% and 4.84% respectively, while National Bank ended down 4.55% at €4.82.
More: CAPITAL
