FTSE/Athex Large Cap
The handful of traders who took an interest in the Athens stock market on Monday only did so to ease out of the bourse amid growing concerns that capital controls may be imposed as a deal between Greece and its creditors remains elusive. Trading was also at a record-low due to the public holiday in most European countries, on top of the prolonged uncertainty over the talks.
Declining blue chips dragged the benchmark of the Greek bourse lower on Tuesday, as the various scenarios regarding proposals and counterproposals placed on the negotiating table by Athens and its creditors appeared to confuse investors instead of inspiring them at the start of the four-day trading week.
The Athens bourse?s recent spurt of growth came to an end on Wednesday. The benchmark closed at its lowest point of the session, with losses of 1 percent, as investors chose to cash in some of their gains from the previous five sessions of growth. The declines on a number of other European markets also played a role.
Greek bank stocks received a much needed boost from news of the ELA extension by the European Central Bank, sending the banks index up 13.40 percent and helping the benchmark recover 2 percent on Wednesday after three consecutive sessions of losses.
The Athens Exchange (ATHEX) general index ended at 719.43 points, rising 2.08 percent from Tuesday?s 704.74 points.
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.