The main index lost 16.23 and 29.92 percent of banks index. These were the largest declines on the Greek stock exchange since 1987. Trading in the shares resumed there after five weeks out.
“Black Monday” – so they say economists about the dramatic situation on the Greek stock exchange on the date of its re-opening. Banks sector index dropped by 29.92% to 461.63 points. The turnover of existing transactions did not exceed 4 million. This is due to the almost complete absence of buyers of the shares.
Due to the massive declines on the stock exchange in Athens was banned so-called short sale – or selling securities not owned by the seller.
The Athens Stock Exchange was closed on June 29, when the Greek government introduced capital controls and closed banks. It happened the day after the referendum, in which the Greeks were against the conditions of the agreement with Brussels.
Investors confined to money in your pocket
The Exchange does not help the restrictions, prohibiting use by investors with money kept in banks.
The Greeks will be able to invest it only by using new financial resources, not using their money kept in banks. Effective weekly withdrawal limit from banks – 420 euros. In order, therefore, to invest in the stock market, they must use the new funds.
Greece opens up the banks. There are restrictions on the movement of capital in order to avoid panic (subtitles)
ZR. RUPTLY / x-news
It is associated with the current still in control of the Greek capital. These restrictions will not apply to foreigners.
The restrictions that opposes the Athenian Investors Association, which intends to send the matter before the European Central Bank. Members of the association believe that the stock market resumed operations should ensure equal treatment of purchasers and sellers, as well as Greek and foreign investors. They argue that it is a basic principle of operation of the stock market.
The European Central Bank is concerned that the opening of the Athens Stock Exchange without restrictions result in a significant outflow of funds from bank deposits to the stock market.
Huge discount is a great bargain shopping
So says the vice president of the National Chamber of Commerce Marek Kłoczko, no limitations would have caused rapid outflow of funds from bank deposits to the stock market. ̶ We have the Greek stock market to deal with a huge reduction in share prices, so for sure, investors would move to shopping – says the expert.
Reflection occurs when agreement is reached ws. Help
Similarly, Michael believes Stajniak – financial markets analyst of X-Trade Brokers, the evaluator that the situation can benefit mainly foreign investors.
̶ We are faced with the possibility of buying Greek assets and foreign investors will be willing to invest in the Greek markets, given the capitulations Ciprasa and agree to drastic reforms – says the analyst.
He added that the agreement relating to third loan will be achieved, we will have a reflection on the Greek stock market.
The subject, however, that it must wait a week or two, and preferably until 20 August, which is the date of the installment repayment to the European Central Bank.
In Greece, strike, doctors and railway workers
Doctors state health services in Greece on strike on Monday, demanding the payment of wage arrears and railway workers – to protest against the planned privatization. In Athens, meanwhile, talks are continuing creditors and the Greek government.
Ok. 8,000 public health doctors (EOPYY) announced a partial strike – although patients are admitted, but for the visit must pay directly to the doctor. The strike will last until Friday.
The doctors want back pay
The reason for the strike is non-payment of salaries by EOPYY. “We do not get salaries since February. It is 8 million euros (late payments) per month,” – stressed the head of the union medics Minister George Eleftoriu.
protesting railway workers
A few hours work ceased on Monday as employees turn, opposed the announced privatization of their company. Because of the strike canceled numerous connections between Athens and the north of the country. In addition, between the hours. 13 and 15 completely cease to run urban railway in the Greek capital, which connects the metropolis of the local airport.
The Greek railways are at the top of the list of companies earmarked for privatization. The income from the privatization process has to go to pay off the debt of the country
In Athens starts the next round of talks related to the reforms necessary to obtain emergency loans
In Athens also start another meeting with the creditors. The topic of today’s talks will be anti-corruption, the functioning of the justice system and tax policy.
The Greek side to effect a speedy receiving the first installment of the loan in the amount of 20-25 billion euros to cover their debts. It would allow for the strengthening of banks, loan repayment to the European Central Bank and the repayment of the bridging loan granted by the euro area countries.
The Greek Government declares that he wants to reach an agreement to 11 August. August 20 is the deadline for repayment of the loan, which Greece has assumed the European Central Bank. It amounts to more than 3 billion euros.
Greek media information shows that in the same month, the government in Athens is to ask for payment of the first tranche of the loan.
IAR, Kamil Piechowski, jk
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