Greek Market Suffers Yet Another Major Setback

The stock exchange ended its torrid first day of trading in five weeks 16 % lower, after it re opened
for the first time in 5 weeks, after dropping nearly 2-3 per cent.
Greek banking stocks were the worst hit with Attica Bank, Alpha Bank and Eurobank Ergasius, Bank
of Piraeus along with the National Bank of Portugal were around 30-percent lower or all trading at the daily volatility limit. Comparable losses were found in other stocks beyond the banking market
also.
The stock market finished Monday unofficially 16.2 per cent lower, as per a Reuters statement.
There is further bad news for the Greek market before, with expensive production PMI amounts for
Jul. down to 30.2 the lowest reading since Markit began compiling datain 1999.
To produce things worse, an economic sentiment index for Greece hit its lowest level since October
2012 in July with capital controls and political uncertainty weighing on sentiment, according to the
IOBE think tank that conducted the survey.
Greek dealers told Reuters on Saturday that they anticipated a torrid evening of deficits when the
market opened. Takis Zamanis, chief trader at Beta Investments, informed the news agency that "the
chance of seeing even one discuss increase in tomorrow's program is practically zero."
"We're not participants in the marketplace, we are the supervisors and we are waiting to see what
occurs," Kostas Botopoulos told CNBC Europe's "Squawk Box" Monday.
He stated there will be no condition intervention into the market, saying: "We Are trying to view
when it will stabilize, at which prices, and exactly what the perception of the Greek market is from
national and international investors."
Focus for the day probably will be on the losses among Greek banking stocks, which represent
around one-fifth of the primary Athens list. Limitations have already been put in place to stem
capital flight, nevertheless.
Craig Erlam, senior industry analyst at money trading platform OANDA, mentioned the banking had
been "reach drastically from the events of this year and now have to be recapitalized at at the least."
The rules
Local investors may face limitations that reveal the continuing capital controls on Greek banks that
restrict withdrawals to 60 euros a day. This means that national investors may only purchase shares
with innovative funds from abroad or funds they need to hand, Reuters reported last week. They may
also buy shares with cash remaining with their protection businesses or money originating from
protection sales or rewards.
Foreign investors may trade freely, yet.
The re open uses a protracted period of financial uncertainty in Greece.

An eleventh hour deal involving the Greek authorities and lenders over a third bailout plan for
Greece worth 86 million euros was agreed, nevertheless, pulling the country back from the brink of
an unprecedented "Grexit" from the only currency union. July 20 was subsequently re opened on by
banks that were Greek.
Read MoreGreece's Tsipras on shaky ground, warns of elections
Market experts warned that Monday was likely to be an evening of losses, nevertheless.
"While it could be easy to suggest that today's re-opening of the Greek stock market is a key step on
the way to some kind of normalization, it is likely to be anything but," based on Michael Hewson,
chief markets analysts at CMC Markets, who warned of "unpredictability and losses."
Stiff struggle
Considering the fact that that the Worldwide Monetary Fund (IMF) - among the nation 's lendershas threatened to pull from a third bailout package without debt relief granted to Greece, the bailout
itself is looking increasingly unstable. Countries like Indonesia battle debt-relief for Greece,
worrying that it could set precedence for other indebted euro zone states.
Time is of the essence for Portugal, however, as it wants a bailout to be agreed (and resources paid)
before a 3.2 billion-euro debt repayment is due to the European Central Bank on July 20.
Against this kind of uncertain backdrop, analyzer Hewson pointed out that Greece still faced an
uphill struggle.
"Aside from the truth that we could well see some huge deficits, there is the small matter that not
simply are the internal politics in Portugal likely to remain hard it is also prone to be exceptionally
baffling to accommodate the jobs the divergent positions of the International Monetary Fund and
Germany on debt-relief, particularly given the closeness of the following debt deadline on the 20th
August."