FTSE/Athex Large Cap

All of Wednesday’s stock gains evaporated during Thursday’s trading session in Athens as uncertainty regarding the country’s political and fiscal future overshadowed the positive corporate results announced in the last few days.

The last week of November began with minor losses for the Greek bourse’s benchmark as traders are anticipating developments regarding a pending review of the Greek program’s progress by the country’s creditors. With Fitch maintaining Greece’s ‘B’ credit rating late on Friday, the market is now shifting its attention to the new ratings to be announced by Moody’s at the end of this week.

The Greek bourse continued rising on Thursday, albeit at a much slower pace due to investors exercising caution ahead of the results of Athens’s negotiations with its creditors and Fitch’s credit rating report.

The benchmark of the Greek stock exchange has added more than 8 percent in just two sessions, climbing almost 40 points on Wednesday on reports that the government is close to reaching a deal with its creditors and that international credit rating agencies are about to upgrade Greece.

Turnover at the Greek bourse slumped to a 14-month low on Monday as investors hold back due to the uncertainty hanging over negotiations between the government and its creditors.

The Athens Exchange (ATHEX) general index ended at 881.76 points, shedding 1.01 percent from Friday’s 890.74 points. The large-cap FTSE/ATHEX 25 index contracted 1.11 percent to 284.65 points.

After racking accumulated losses of 9.35 percent in the previous four sessions, Greeks stocks finally reversed course on Thursday.

Athens Exchange (ATHEX) general index ended at 883.54 points, adding 1.29 percent to Wednesday’s 872.31 points. The large-cap FTSE/ATHEX 25 index rose 1.12 percent to 285.35 points.

The Greek bourse’s banks index hit a 19-month low on Wednesday,sliding 5.06 percent and weighing on the market in yet another session of losses. Market sources explained the fresh decline by pointing to the Capital Market Commission’s probe into naked short selling concerning bank shares last spring.

The Athens stock market posted gains on Thursday, in line with most of its international peers and stretching its rising streak to five sessions on slightly improved turnover.

Concerns that local banks are planning to resort to fresh share capital increases without the participation of old shareholders – in a bid to reduce the stakes that the bank bailout fund currently holds in them – led Greek credit sector stocks lower on Wednesday, as the elation at the stress test results has all but worn off. The rest of the market followed suit, despite a promising start.