Significant losses over the previous days prompted a reaction from investors in the Greek stock market on Friday, in line with the rebound noted in most European bourses. However the benchmark ended the week almost 5 percent worse off, largely due to the handout package announced by the government on Tuesday.
Europe-wide concerns at the looming prospect of a British exit from the European Union without a prior agreement on terms have been affecting local stocks all week, and Friday was no exception, while the continuing sell-off of shares in the three banks that will exit the MSCI Standard index has taken the banks index down to a new 33-month low.
MSCI has confirmed the worst-case scenario by deciding to strike the stocks of three out of the country's four systemic banks - National, Piraeus and Eurobank - from the MSCI Standard Greece index and relegate them to the MSCI Small Cap Index during the biannual revision of its indexes, with an immediate impact on the Athens stock exchange's banks index, which tumbled 7.1 percent on Wednesday.
The relegation of National Bank, Eurobank and Piraeus Bank from the MSCI Standard index for emerging markets into the MSCI Small Cap Index, from which Ellaktor has also been removed, had a significant impact on Wednesday's trading session at Athinon Avenue, hurting the prices not only of bank stocks but other sectors too.