Piraeus Bank

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.

By Yiannis Papadoyiannis

Piraeus Group announced on Thursday the sale of 98.5 percent of its Egyptian subsidiary, Piraeus Bank Egypt, to Al Ahli Bank of Kuwait (ABK) for $150 million.

The statement noted that the price agreed amounts to 1.5 times the Egyptian lender?s equities.

Good news for at least one of Greece’s four systemic banks on Thursday, as Piraeus Bank said it has sealed a deal with Kuwait’s Al Ahli Bank to sell its 98.5-percent stake in Piraeus Bank Egypt (PBE) for US$150 million.

The agreement is subject to approval by the Egyptian central bank and the Hellenic Financial Stability Fund (HFSF), amongst others.

By Yiannis Papadoyiannis

The heads of Greece?s four systemic banks stress the need for an agreement between the government and the country?s international creditors to end uncertainty and put the economy back on the path to growth.

Optimists came out on top at the end of Thursday?s Athens bourse session, as the positive signs from the meeting between Prime Minister Alexis Tsipras and German Chancellor Angela Merkel appeared to have give the negotiation process a boost. It was the second consecutive day of gains for the benchmark, although trading volume slipped below 100 million euros.

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.

Greek bank bonds fell to records as the European Central Bank was said to be studying measures to rein in funding to the country?s lenders.

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.