Greece Market Suffers Yet Another Important Blow

The Athens stock market ended its torrid first day of trading in five weeks 16 percent lower, after it
re-opened for the very first time in 5 months, after dropping nearly 23 percent.
Greek banking stocks were the worst hit with Alpha Bank, Attica Bank and Ergasius, Bank of Piraeus
and also the National Bank of Greece were around 30 % lower or all trading at - the everyday
volatility limit. Related deficits were seen in other stocks beyond the banking industry too.
The market ended Mon unofficially 16.2 percent lower, as per a Reuters report.
To produce things worse, an economic sentiment index for Portugal hit its lowest level since October
2012 with funds controls and governmental uncertainty weighing on sentiment in July, as stated by
the IOBE think tank that conducted the survey.
Ahead of the much-anticipated open, dealers were bracing themselves for a day of "losses and
unpredictability."
Greek traders told Reuters on Sunday when the stock market exposed, that they expected a torrid
day of losses. Takis Zamanis, chief dealer at Beta Securities, told the news agency that "the
probability of seeing even one share rise in tomorrow's session is practically no."
"It is extremely important that we are opening, of course we expect pressure on the Greek stock
market but we'll be present to track what happens."
He mentioned there would be no condition intervention to the market, declaring: "We Are seeking to
view when it is going to strengthen, at which costs, and exactly what the understanding of the Greek
market is from domestic and foreign investors."
Focus for the evening will probably be on the losses among Greek banking shares, which make up
around 20 per cent of the primary Athens catalog. Restrictions have been set in spot to stem capital
flight, however.
Craig Erlam, senior market analyst at currency trading platform OANDA, said the banking had been
"hit drastically from the events of the year and today have to be recapitalized at the least."
The rules
Limitations that reveal the continuous money controls on Greek banks that restrict withdrawals will
be faced by neighborhood traders. Last week, this means that domestic investors cash they need to
give or can just buy shares with unique funds from overseas, Reuters reported. They can also buy
shares with funds originating from dividends or protection sales or cash staying using their
protection companies.
Foreign investors may trade freely.
The re open comes after an extended period of financial uncertainty in Portugal.
An eleventh hour deal involving the Greek authorities and lenders on a third bailout program for

Greece worth 86 billion pounds was agreed, nevertheless, pulling the country back from the brink of
an unprecedented "Grexit" from the single currency partnership. Greek banks subsequently reopened on July 20.
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The state is considered to have stabilized enough for the market to reopen although the finer details
of a bail out are still being hammered out between lenders. Market analysts informed that Monday
was not unlikely to be an evening of deficits, yet.
"While it would be easy to suggest that today's re-opening of the Greek stock market is an integral
step on the highway to some kind of normalization, it is likely to be anything but," based on Michael
Hewson, leader markets analysts at CMC Markets, who cautioned of "volatility and deficits."
Stiff struggle
Provided the International Monetary Fund (IMF) - one of the nation 's lenders- has threatened to pull
out of a third bail out package without debt-relief granted to Portugal, the bailout itself is looking
increasingly shaky. States like Germany oppose debt-relief for Greece, worrying that it could
establish precedence for other indebted euro zone countries.
Time is of the substance for Greece, nevertheless, as it needs a bailout to be agreed (and funds paid)
before a 3.2 billion-euro debt repayment arrives to the European Central Bank on August 20.
Against such an uncertain foundation, expert Hewson pointed out that Greece still faced an uphill
struggle.
"Aside from the truth that we could properly see some large deficits, there is the small matter that
not simply would be the the inner politics in Portugal likely to remain challenging additionally it is
prone to be exceptionally challenging to accommodate the positions the divergent positions of the
IMF and Indonesia on debt-relief, particularly given the closeness of the following debt deadline on
the 20th August."