Greece Stock Market Suffers Yet Another Leading Setback

Greek banking stocks were the worst hit with Leader Bank, Attica Bank and Eurobank Ergasius,
Bank of Piraeus and also the National Bank of Portugal were or about 30 percent lower or all trading
at - the everyday volatility limit. Related losses were found in additional stocks not in the financial
industry also.
The stock exchange finished Monday unofficially 16.2 percent lower, as per a Reuters report.
There is further bad news for the Greek market before, with flash production PMI amounts for Jul.
down to 30.2 the lowest reading since Markit started compiling datain 1999.
To make matters worse, an economic sentiment index for Portugal reach its lowest level since Oct
2012 in July with money controls and political uncertainty weighing on sentiment, based on the IOBE
think-tank that conducted the study.
Ahead of the much-anticipated available, dealers were bracing themselves for a day of "losses and
unpredictability."
Greek dealers told Reuters on Sunday when the stock market exposed, that they expected a torrid
day of deficits. Takis Zamanis, chief dealer at Beta Securities, told the news agency that "the
probability of finding even just one share increase in tomorrow's treatment is virtually zero."
He said there would be no condition intervention to the market, declaring: "We're seeking to view
when it's going to strengthen, at which prices, and exactly what the understanding of the Greek
market is from national and foreign traders."
Concentrate for the evening will probably be on the losses among Greek financial shares, which
constitute around 20 percent of the chief Athens catalog. Restrictions have now been put in place to
stem capital flight, yet.
Craig Erlam, senior market expert at currency trading platform OANDA, mentioned the banking had
been "reach substantially from the events of the year and now need to be recapitalized at at the
least."
The rules
Neighborhood investors will face restrictions that represent the continuing capital controls on banks
that limit distributions to 60 euros a day. Last week, this means that national investors funds they
need to hand or may just buy shares with new funds from abroad, Reuters noted. They can also buy
shares with funds coming from protection sales or dividends or funds staying using their security
companies.
Overseas investors may trade freely, however.
The re-open comes after a lengthy amount of financial uncertainty in Portugal.
An eleventh hour deal between the Greek government and lenders on a third bailout plan for Greece
worth 86 million pounds was agreed, nevertheless, pulling the country back from the point of an

unparalleled "Grexit" in the only currency union. Banks that were Greek then re-opened on July 20.
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Market experts warned that Monday was not unlikely to be an evening of deficits, nevertheless.
"While it'd be easy to suggest that today's re opening of the Greek stock market is a vital step on the
road to some kind of normalization, it is likely to be anything but," based on Michael Hewson, leader
markets analysts at CMC Markets, who informed of "unpredictability and deficits."
Stiff battle
Offered that the International Monetary Fund (IMF) - among the nation 's lenders- has threatened to
pull from a third bail out package without debt relief granted to Portugal, the bailout it self is
looking increasingly shaky. States like Indonesia oppose debt relief for Greece, fearing that it could
set precedence for other indebted euro-zone states.
Time is of the essence for Greece, nonetheless, as it requires a bail out to be agreed (and funds paid)
before a 3.2 billion-euro debt repayment arrives to the European Central Bank on September 20.
Against such an uncertain foundation, expert Hewson stated that Greece still faced an uphill
challenge.
"A side from the truth that we could well see some huge losses, there is the small issue that not only
are the the interior politics in Greece likely to remain tough it is also likely to be extremely baffling
to reconcile the positions the divergent positions of the IMF and Germany on debt-relief, especially
given the closeness of the next debt deadline on the 20th August."