03/08/2015 10:10
The Athens Stock Exchange resumed its operation with heavy losses today after a five-week shutdown due to the imposition of capital controls.
The ASE General Index declines at 615.17 points down by 22.86% while FTSE is at 187.43 and -22.30%.
The banking sector records heavy losses as well, falling by 29.92%.
Alpha Bank loses 29,81%, Eurobank 29,86%, Piraeus Bank 30% and the National Bank 30%.
The yield of the ten year bond of Greece is at 11.8%, same as in Friday while the yield of the four year bond is at 17%.
Trading on the Athens bourse was suspended in late June as part of capital controls imposed to stem a debilitating outflow of euros that threatened to collapse Greece's banks and hurl the indebted country out of the euro zone.
Since then, a deal has been reached, but its implementation is expected to be hard while political in-fighting in Athens over the bailout rules could prompt a new election.
Finance Minister Euclid Tsakalotos issued a ministerial decree last Friday that includes restrictions for Greek-based traders for an unspecified time period, while foreign investors will be unaffected when trading resumes.
The Athens Stock Exchange announced that following the signing by the Minister of Finance of the relevant decision, the Athens Exchange Stock Markets Steering Committee and the Boards of Directors of AthexClear and Hellenic Central Securities Depository decided the reopening, as of Monday the 3rd of August, of the Regulated market and the Multilateral Trading Facility of "EN.A" (Alternative Market) of the Athens Stock Exchange and have proposed to the Hellenic Capital Market Commission the resumption of clearing and settlement operations for all securities traded on the Greek markets and the Multilateral Trading Facility "EN.A".
Foreign investors will not face restrictions on operations on the Athens Stock Exchange, while volatility limits will remain unchanged at 30% and all shares would be traded, including banking stocks.
Local investors will face restrictions aimed at stemming capital flight.
Under the European Central Bank approved plan, local investors will be allowed to buy shares with existing cash holdings, but not to withdraw money from their Greek bank accounts to buy shares.
According to Axia Ventures Group’s morning report, some market participants had warned that unlimited trading for domestic investors would have posed a serious risk for lenders by accelerating capital outflows. Note however that local brokerages have criticized the curb on the use of local deposits for acquiring securities, suggesting that the move risked distorting the market.
It is estimated that the market could take a significant plunge today as there is a great degree of uncertainty as to the political outlook, while market attention will remain on the bank recapitalizations, which is reportedly on this week’s agenda of talks between Greek finance ministry officials and the so-called “quartet” of official creditors, namely the European Commission, the International Monetary Fund, the European Central Bank and the European Stability Mechanism.
As Reuters reports, greek traders suggest that a combination of pent-up trading, worries about the future and Greece's worsening economy could knock 20% or more off the Athens General Index on Monday. It is added that trading of Greek assets in the United States over the period the bourse has been closed suggests the same.
“The possibility of seeing even a single share rise in tomorrow’s session is almost zero,” said Takis Zamanis, chief trader at Beta Securities.
It is stressed that banking stocks may take much of the brunt on Monday because Greece's financial sector needs to be recapitalised.
Banks constitute around 20 percent of the main Athens index.
European markets are recording small losses. German index DAX is down by 0.32% while the French CAC 40 is losing 0.29% and London’s FTSE 100 0.21%.
The CSE General Index is at 76.30 points, losing 0.37% and FTSE is at 43.93 and -0.41%.
The ASE General Index declines at 615.17 points down by 22.86% while FTSE is at 187.43 and -22.30%.
The banking sector records heavy losses as well, falling by 29.92%.
Alpha Bank loses 29,81%, Eurobank 29,86%, Piraeus Bank 30% and the National Bank 30%.
The yield of the ten year bond of Greece is at 11.8%, same as in Friday while the yield of the four year bond is at 17%.
Trading on the Athens bourse was suspended in late June as part of capital controls imposed to stem a debilitating outflow of euros that threatened to collapse Greece's banks and hurl the indebted country out of the euro zone.
Since then, a deal has been reached, but its implementation is expected to be hard while political in-fighting in Athens over the bailout rules could prompt a new election.
Finance Minister Euclid Tsakalotos issued a ministerial decree last Friday that includes restrictions for Greek-based traders for an unspecified time period, while foreign investors will be unaffected when trading resumes.
The Athens Stock Exchange announced that following the signing by the Minister of Finance of the relevant decision, the Athens Exchange Stock Markets Steering Committee and the Boards of Directors of AthexClear and Hellenic Central Securities Depository decided the reopening, as of Monday the 3rd of August, of the Regulated market and the Multilateral Trading Facility of "EN.A" (Alternative Market) of the Athens Stock Exchange and have proposed to the Hellenic Capital Market Commission the resumption of clearing and settlement operations for all securities traded on the Greek markets and the Multilateral Trading Facility "EN.A".
Foreign investors will not face restrictions on operations on the Athens Stock Exchange, while volatility limits will remain unchanged at 30% and all shares would be traded, including banking stocks.
Local investors will face restrictions aimed at stemming capital flight.
Under the European Central Bank approved plan, local investors will be allowed to buy shares with existing cash holdings, but not to withdraw money from their Greek bank accounts to buy shares.
According to Axia Ventures Group’s morning report, some market participants had warned that unlimited trading for domestic investors would have posed a serious risk for lenders by accelerating capital outflows. Note however that local brokerages have criticized the curb on the use of local deposits for acquiring securities, suggesting that the move risked distorting the market.
It is estimated that the market could take a significant plunge today as there is a great degree of uncertainty as to the political outlook, while market attention will remain on the bank recapitalizations, which is reportedly on this week’s agenda of talks between Greek finance ministry officials and the so-called “quartet” of official creditors, namely the European Commission, the International Monetary Fund, the European Central Bank and the European Stability Mechanism.
As Reuters reports, greek traders suggest that a combination of pent-up trading, worries about the future and Greece's worsening economy could knock 20% or more off the Athens General Index on Monday. It is added that trading of Greek assets in the United States over the period the bourse has been closed suggests the same.
“The possibility of seeing even a single share rise in tomorrow’s session is almost zero,” said Takis Zamanis, chief trader at Beta Securities.
It is stressed that banking stocks may take much of the brunt on Monday because Greece's financial sector needs to be recapitalised.
Banks constitute around 20 percent of the main Athens index.
European markets are recording small losses. German index DAX is down by 0.32% while the French CAC 40 is losing 0.29% and London’s FTSE 100 0.21%.
The CSE General Index is at 76.30 points, losing 0.37% and FTSE is at 43.93 and -0.41%.
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