Greece Stock Market Suffers Yet Another Important Setback

Greek banking stocks were the worst hit with Attica Bank, Leader Bank and Ergasius, Bank of
Piraeus along with the National Bank of Greece were or about 30 % lower or all trading at - the daily
volatility limit. Related losses were found in other stocks outside the financial market also.
The market ended Monday unofficially 16.2 per cent lower, as per a Reuters statement.
There is further bad news for the Greek market before, with expensive manufacturing PMI figures
for Jul. down to 30.2 the lowest reading since Markit started producing datain 1999.
To create matters worse, an economic sentiment index for Portugal 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 conducted the survey.
Greek traders told Reuters on Saturday when the stock exchange exposed, that they anticipated a
torrid day of losses. Takis Zamanis, chief trader at Beta Securities, informed the news agency that
"the probability of finding even one share increase in tomorrow's program is almost zero."
Meanwhile, the chairperson of the Hellenic Capital Markets Commission told CNBC ahead of the
open that his commission would monitor the market closely on Monday.
He said there will not be any state involvement to the marketplace, declaring: "We're planning to
view when it is going to stabilize, at which prices, and what the understanding of the Greek market
is from domestic and international traders."
Concentrate for the day will probably be on the deficits among Greek financial shares, which make
up around one-fifth of the main Athens catalog. Limitations have been put in place to stem capital
flight, nonetheless.
Craig Erlam, senior market analyst at money trading platform OANDA, mentioned the banks had
been "reach significantly from the events of this year and now have to be recapitalized at the very
least."
The rules
Local investors may face limitations that reflect the continuous capital controls on banks that are
Greek that limit withdrawals to 60 euros a day. This means that national investors funds they have to
hand or can just purchase shares with money that was innovative from overseas, Reuters noted the
other day. They may also buy shares with money originating from security sales or rewards or cash
staying using their security companies.
Foreign traders may trade freely, however.
The reopen uses a protracted amount of fiscal uncertainty in Portugal.
An eleventh-hour deal involving the Greek government and lenders over a third bailout program for
Greece worth 86 billion euros was consented, nevertheless, pulling the nation back from the brink of
an unprecedented "Grexit" from the only currency union. Banks subsequently re-opened on July 20.

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The nation is deemed to have stabilized enough for the stock market to re open even though the
finer details of a bail out are still being hammered out between lenders. Industry experts informed
that Monday was probably to be a day 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 your way to some form of normalization, chances are to be anything but," according to Michael
Hewson, leader markets analysts at CMC Markets, who warned of "unpredictability and deficits."
Stiff struggle
Given that the International Monetary Fund (IMF) - among the nation's lenders- has threatened to
pull from a third bailout package without debt relief granted to Greece, the bailout itself is looking
increasingly precarious. Nations like Germany battle debt-relief for Greece, worrying that it would
set precedence for other indebted euro-zone states.
Time is of the essence for Greece, yet, as it needs a bailout to be concurred (and funds paid) in front
of a 3.2 billion-euro debt repayment arrives to the European Central Bank on July 20.
Against this uncertain foundation, analyzer Hewson pointed out that Portugal still faced an uphill
struggle.
"Apart from the fact that we're able to properly see some huge losses, there is the small matter that
not simply would be the internal politics in Greece likely to remain challenging it is also more likely
to be exceptionally challenging to reconcile the positions the divergent positions of the IMF and
Germany on debt-relief, particularly given the closeness of the following debt deadline on the 20th
August."