FTSE/Athex Large Cap

Bank stocks and a few other blue chips propped up the benchmark at Athinon Avenue on Wednesday as the majority of stocks on the board headed south and trading volume sank.

After another impasse at Monday's Euro Working Group, the Athens bourse shook off the pressure on bank stocks on Tuesday, with the majority of stocks and the benchmark heading higher on a day of healthy turnover.

An unexpectedly aggressive selling spree by holders of bank stocks on Friday inflicted the heaviest daily selloff in the credit sector in over four months. The impact on the rest of the market was significant as there was hardly any reaction among non-bank stocks.

Stocks at the Greek bourse had a mixed day on Wednesday, with investors awaiting developments on the framework for the protection of defaulters' primary residences. Bank stocks weighed on the benchmark, although it still ended up in positive territory.

After five days of gains and the buying fatigue recorded late on Monday, stocks at Athinon Avenue recorded notable losses on Tuesday, bucking the trend seen on other eurozone markets, with turnover remaining low. The next couple of days will determine the direction of the market up to the end of the month.

The bourse benchmark at Athinon Avenue headed higher for a fifth session in a row on Monday, although it appeared to have run out of steam as it closed some way below its day-high and trading volume left a lot to be desired. The majority of stocks ended up in the red, too.

There were across-the-board gains at the Athens bourse on Wednesday, led by Public Power Corporation and banks, while trading volume appears to be growing by the day in a clear sign that something is changing in the market that a few years ago was relegated from developed to developing.

The bond issue clearly stole the limelight away from the local bourse on Tuesday, with investors focusing on the course of the 10-year note instead of buying Greek stocks, and sellers sending the benchmark back below 700 points.

With the criticism contained in the government's conduct report by the European Commission already priced in, stocks at Athinon Avenue spent most of Wednesday in the red before banks saved the day for the benchmark, helping it to close with minor gains. Turnover continued to shrink.

The prospects of a Greek 10-year bond issue and a new tender for the sale of four coal-fired plants owned by Public Power Corporation saw the Athens bourse benchmark hit a new five-month high on Tuesday. Blue chips rose despite the marginal drop for the banks index and the decline in turnover.