After falling nearly 23 % after it reopened for the first time in 5 months, the Athens stock market ...

1. Greek Stock Market Suffers Yet Another Leading Setback
After falling nearly 23 % after it reopened for the first time in 5 months, the Athens stock market
ended its torrid first day of trading in five weeks 16 percent lower.
Greek banking stocks were the worst hit with Eurobank Ergasius, Attica Bank and Alpha Bank, Bank
of Piraeus and the National Bank of Portugal were all trading at or or about 30-percent lower - the
everyday volatility limit. Related losses were seen in additional stocks outside the financial market
too.
The market finished Friday unofficially 16.2 percent lower, according to a Reuters record.
There was further bad news for the Greek market previously, with expensive production PMI
amounts for July down to 30.2 the lowest reading since Markit started compiling datain 1999.
To make things worse, an economic sentiment index for Greece reach its lowest level since Oct 2012
in July with money controls and governmental uncertainty weighing on sentiment, in line with the
IOBE think-tank that conducted the study.
Greek traders told Reuters on Sunday that they anticipated a torrid day of losses when the market
exposed. Takis Zamanis, chief trader at Beta Securities, informed the news agency that "the
probability of finding even an individual discuss rise in tomorrow's treatment is nearly zero."
"It is crucial that we're opening, of course we expect stress on the on the Greek stock market but
we'll be present to monitor what happens."
He stated there could be no condition intervention into the market, stating: "We're seeking to view
when it will stabilize, at which costs, and what the perception of the Greek market is from national
and foreign investors."
Focus for the evening is likely to be on the deficits among Greek financial stocks, which represent
around one-fifth of the principal Athens catalog. Constraints have now been set in spot to stem
capital flight.
Craig Erlam, senior market expert at forex trading platform OANDA, mentioned the banks had been
"reach considerably by the events of this year and now must be recapitalized in at the least."
The rules
Neighborhood investors may face constraints that reflect the continuous funds controls on banks
that are Greek that restrict withdrawals to 60 euros a day. This implies that domestic investors funds
they have to give or can only purchase shares with fresh funds from abroad, Reuters reported a
week ago. They also can buy shares with funds staying with their security firms or money originating
from protection revenue or dividends.
Overseas traders may trade freely.
The re-open employs a protracted amount of financial uncertainty in Portugal. The stock market shut
when it seemed increasingly likely that Greece was about to go broke and abandon the euro zone

2. when capital controls were imposed on Greek banks by the end of June.
An eleventh-hour deal involving the Greek government and lenders on a next bailout program for
Greece worth 86 million euros was agreed, however, pulling the nation back from the verge of an
unparalleled "Grexit" from the one currency union. Greek banks then re-opened on July 20.
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Market analysts cautioned that Monday was likely to be a day of losses, however.
"While it might be easy to imply that today's reopening of the Greek stock market is an integral step
traveling to some type of normalization, it's likely to be anything but," based on Michael Hewson,
chief marketplaces analysts at CMC Markets, who informed of "unpredictability and deficits."
Uphill battle
Offered that the Worldwide Monetary Fund (IMF) - one of the nation 's lenders- has threatened to
pull out of a third bailout package without debt relief granted to Portugal, the bailout it self is
looking increasingly precarious. States like Philippines oppose debt relief for Greece, fearing that it
could set precedence for other indebted euro-zone nations.
Time is of the substance for Portugal, nevertheless, as it requires a bailout to be agreed (and funds
paid) in front of a 3.2 billion-euro debt-repayment is due to the European Central Bank on
September 20.
Against this uncertain foundation, analyzer Hewson pointed out that Portugal still faced an uphill
challenge.
"Apart from the truth that we're able to properly see some huge deficits, there's the small issue that
not simply are the internal politics in Greece likely to remain difficult it's also prone to be extremely
baffling to accommodate the opportunities 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."