Economy of Greece
Piraeus Bank's stock was instrumental to the benchmark staying in the black on Tuesday at Athinon Avenue, as the lender rebounded from three consecutive sessions of losses. This brought the main index to a level unseen since December 5, although the majority of stocks ended with losses and turnover remained disappointing.
The Public Power Corporation tender for the concession of the lignite plants at Meliti and Megalopoli has ended in failure, as was expected.
The PPC board rejected Mytilineos SA's bid for the Meliti plants on Friday, as well as the below-par offer by the Sev.en Energy-GEK Terna consortium for the entire portfolio that PPC is selling.
Despite expectations for an upgrade, Fitch maintained Greece's sovereign credit rating at BB- late on Friday, and the Greek economy's outlook as "stable." Greece thus remains three notches below investment grade, according to Fitch, whose rating for the country is higher than those of peers Moody's and Standard & Poor's.
Troubled state mining company Larco will continue to operate, at the expense of Public Power Corporation, as the pre-election mood dominating local politics means it is unlikely the utility will secure terms for the payment of its dues that currently exceed 300 million euros.
This is despite PPC's previous threats to cut Larco's supply and terminate their contract.
Bank stocks recovered from their decline on Friday morning to buoy the benchmark and the blue chip index higher by the end the session. Information on further action by banks to reduce their bad loans helped stocks offset losses triggered by Deputy Prime Minister Yiannis Dragasakis's statements, who said local lenders may need more capital injections in the future.