Legislative act sees bourse gains vanish

The government?s decision to introduce a legislative act forcing state entities to submit their cash reserves to the Bank of Greece canceled out all gains that stocks had notched up in the week?s opening session at Athinon Avenue, while banks shook off the threat by eurozone central bankers that the Greek credit system may soon be short of collateral for drawing liquidity.

The Athens Exchange (ATHEX) general index ended at 728.98 points, declining 0.11 percent from Friday?s 729.81 points. The large-cap FTSE/ATHEX 25 index contracted 0.59 percent to close at 214.19 points.

Given the pessimism on the speed of negotiations between Athens and its creditors, any positive news in the coming days is likely to send stocks soaring in the short term.

The banks index expanded 0.89 percent, with National growing 4.28 percent and Alpha rising 2.94 percent, while Piraeus Bank ? fresh from absorbing Panellinia Bank ? gave up 10.42 percent. Among other blue chips, Marfin Investment Group rose 4.39 percent and Viohalco climbed 4 percent, as Folli Follie conceded 5.06 percent.

In total 46 stocks recorded gains, 47 registered losses and 29 remained unchanged.

Turnover came to 72.9 million euros, down from Friday?s 85.2 million.