Greek Stock Market Suffers Another Important Setback

Greek financial stocks were the worst hit with Ergasius, Attica Bank and Alpha Bank, Bank of
Piraeus along with the National Bank of Portugal were all trading at or around 30 percent lower the daily volatility limit. Similar deficits were seen in other stocks not in the financial business also.
The market finished Mon unofficially 16.2 percent lower, as per a Reuters record.
To produce matters worse, an economic sentiment index for Greece hit its lowest level since Oct
2012 with political uncertainty weighing on sentiment and money controls in July, based on the IOBE
think-tank that conducted the survey.
Greek traders told Reuters on Saturday when the stock market exposed that they anticipated a
torrid day of deficits. Takis Zamanis, chief dealer at Beta Securities, told the news agency that "the
probability of seeing even an individual discuss rise in tomorrow's program is virtually zero."
The chairman of the Hellenic Capital Markets Commission told CNBC before the open that his
percentage would monitor the marketplace closely on Mon.
"It is very important that we're beginning, of course we expect stress on the on the Greek stock
market but we'll be present to track what the results are."
He said there would not be any state intervention to the market, saying: "We Are trying to view
when it will strengthen, at which costs, and what the understanding of the Greek marketplace is
from domestic and international traders."
Focus for the evening will probably be on the deficits among Greek banking stocks, which represent
around 20 per cent of the main Athens index. Restrictions have been put in place to stem capital
flight.
Craig Erlam, senior industry expert at money trading system OANDA, said the banking had been
"reach drastically by the events of the year and today must be recapitalized at at least."
The rules
Restrictions that reveal the continuous capital controls on banks that restrict withdrawals will be
faced by local investors. A week ago, this implies that national investors funds they need to hand or
can just buy shares with new funds from overseas, Reuters reported. They also can purchase shares
with money coming from protection revenue or dividends or cash remaining with their safety
businesses.
Foreign traders may trade freely, yet.
The reopen comes after a prolonged amount of fiscal uncertainty in Portugal. The stock exchange
shut when capital controls were imposed on Greek banks by the end of June, when it seemed
increasingly likely that Greece was going to go broke and leave the euro zone.
An eleventh-hour deal between the Greek government and lenders on a third bailout plan for Greece
worth 86 million euros was agreed, nevertheless, pulling the country back from the verge of an

unparalleled "Grexit" from the only currency union. July 20 was then reopened on by banks.
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Market analysts informed that Mon was not unlikely to be an evening of deficits, however.
"While it'd be easy to suggest that today's reopening of the Greek stock market is a key step
traveling to some type of normalization, it's likely to be anything-but," according to Michael Hewson,
chief marketplaces experts at CMC Markets, who informed of "unpredictability and deficits."
Stiff struggle
Given the Worldwide Monetary Fund (IMF) - one of the nation's lenders- has threatened to take from
a third bail out package without debt-relief granted to Portugal, the bailout itself is looking
increasingly precarious. Nations like Indonesia oppose debt relief for Greece, worrying that it would
establish precedence for other indebted euro-zone countries.
Time is of the essence for Portugal, nevertheless, as it wants a bail out to be concurred (and
resources disbursed) in front of a 3.2 billion-euro debt repayment arrives to the European Central
Bank on August 20.
Against this uncertain backdrop, analyst Hewson pointed out that Portugal still faced an uphill
challenge.
"A side from the fact that we could well see some large losses, there's the small matter that not
simply are the the interior politics in Portugal likely to remain challenging additionally it is likely to
be exceptionally challenging to reconcile the jobs the divergent positions of the International
Monetary Fund and Indonesia on debt-relief, particularly given the proximity of the following debt
deadline on the 20th August."