Greek Stock Market Suffers Yet Another Important Blow

The stock exchange stopped its first day of trading in five weeks 16 per cent lower, after it re opened
for the first time in five days after falling almost 23 percent.
Greek banking stocks were the worst hit with Leader Bank, Attica Bank and Eurobank Ergasius,
Bank of Piraeus and the National Bank of Portugal were around 30 % lower or all trading at - the
daily volatility limit. Similar losses were found in additional stocks outside of the financial market
too.
The stock market ended Mon unofficially 16.2 per cent lower, as per a Reuters record.
To produce matters worse, an economic sentiment index for Greece reach its lowest level since
October 2012 with capital controls and governmental uncertainty weighing on sentiment in July,
according to the IOBE think tank that ran the survey.
Ahead of the much-anticipated available, traders were bracing themselves for a day of "losses and
unpredictability."
Greek dealers told Reuters on Saturday that they expected a torrid day of deficits when the stock
market opened. Takis Zamanis, chief dealer at Beta Investments, told the news agency that "the
chance of finding even just one share rise in tomorrow's program is almost zero."
"We are not participants in the marketplace, we are the managers and we are waiting to see what
occurs," Kostas Botopoulos told CNBC Europe's "Squawk Box" Monday.
He mentioned there would be no condition intervention into the market, stating: "We're planning to
view when it's going to stabilize, at which costs, and exactly what the perception of the Greek
market is from domestic and international investors."
Concentrate for the evening is likely to be on the deficits among Greek financial shares, which
constitute around one-fifth of the primary Athens list. Limitations have already been set in spot to
stem capital flight.
Craig Erlam, senior market analyst at currency trading platform OANDA, mentioned the banking
had been "reach well from the events of this year and today need to be recapitalized in at least."
The rules
Limitations that represent the continuous capital controls on Greek banks that restrict distributions
will be faced by local traders. This implies that domestic investors can just purchase shares with new
funds from overseas or cash they must give, Reuters reported a week ago. They may also buy shares
with funds staying using their safety companies or money coming from security revenue or rewards.
International investors may trade freely, yet.
The re-open comes after a lengthy period of financial uncertainty in Greece.
An eleventh-hour deal involving the Greek authorities and lenders over a next bailout program for

Greece worth 86 million dollars was agreed, however, pulling the nation back from the verge of an
unprecedented "Grexit" in the single currency partnership. July 20 was then reopened on by banks.
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Even though the finer details of a bailout are still being hammered out between lenders, the country
is considered to have stabilized enough for the securities market to re-open. Market experts
cautioned that Mon was probably to be an evening of losses, nevertheless.
"While it will be easy to imply that today's re-opening of the Greek stock market is an integral step
on the road to some form of normalization, chances are to be anything-but," according to Michael
Hewson, chief markets analysts at CMC Markets, who informed of "unpredictability and deficits."
Stiff battle
Provided that the International Monetary Fund (IMF) - among the nation 's lenders- has threatened
to pull out of a third bail out package without debt relief granted to Portugal, the bailout it self is
looking increasingly unstable. Nations like Germany battle debt-relief for Greece, worrying that it
could establish precedence for other indebted euro-zone countries.
Time is of the substance for Greece, yet, as it needs a bail out to be concurred (and resources paid)
prior to a 3.2 billion euro debt repayment is due to the European Central Bank on August 20.
Against this uncertain backdrop, expert Hewson pointed out that Portugal still faced an uphill battle.
"Aside from the fact that we could well see some huge losses, there's the small matter that not
simply would be the internal politics in Portugal likely to remain difficult additionally it is likely to be
extremely challenging to accommodate the jobs the divergent positions of the International
Monetary Fund and Indonesia on debt-relief, especially given the closeness of the next debt timeline
on the 20th August."