ATHEX: Stocks drop on Moody's downgrade

The government?s apparent inability to reach a deal with the country?s creditors to ease the Greek cash crisis and banish the nightmare of a default led Moody?s to downgrade Greek bank products, which in turn increased the risk of a collateral haircut at today?s crucial European Central Bank board meeting. The European Commission?s slashing of the growth forecast did not help either. Consequently Greek stocks suffered predictable losses on Tuesday.

The Athens Exchange (ATHEX) general index closed at 794.23 points, shedding 3.85 percent from Monday?s 826.04 points. The large-cap FTSE/ATHEX 25 index contracted 3.94 percent to close at 237.18 points.

Piraeus Bank led the losers, going down 14.19 percent, while National Bank fell 10.57 percent. Motor Oil was the only blue chip to rise (1.02 percent).

In total 68 stocks went up, 84 headed south and 11 stayed put.

Turnover reached 95.8 million euros, down from Monday?s 82.5 million.

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