Viohalco

The stock market in Athens shook off the European Central Bank's statements that kept Greece's chances of entering the ECB bond-buying program remote, and took the benchmark back above the 820-point mark on Tuesday. Trading volume dropped below 50 million euros.

Greek stocks had another mixed session on Monday as the majority of blue chips headed south while the rest of the market went the other way, on significantly reduced turnover.

The Greek stock market appeared to play second fiddle to the bond issue of the Mytilineos group on Wednesday - the book closure date is on Friday - with turnover on the local bourse slumping to just over 50 million and stocks presenting a mixed picture.

The modest gains on low trading came as no surprise on Friday at the Greek bourse, and activity at Athinon Avenue looks set to remain shallow until next Thursday's Eurogroup meeting, where key decisions are expected - at least as far as Athens's much-needed bailout tranche is concerned.

High taxes and social security contributions, Greek bureaucracy, high energy costs and unclear and dysfunctional zoning laws are the factors that have led to the contraction of the local manufacturing sector, according to a study by the Foundation for Economic and Industrial Research (IOBE).

The plans of Greece's creditors about retaining the International Monetary Fund as an observer but not a contributor of funds to the Greek bailout program, as reported in the press, sent Greek stocks tumbling on Wednesday. The drop was reinforced by the fresh hike in sovereign bond yields.

The correction process continued on Monday on the Greek bourse as the benchmark appeared to shy away from the 800-point mark on news of an economic contraction in the first quarter and Moody's caution over the course of bad-loan management.

The main index of the Greek stock exchange made it 12 in a row on Wednesday for the first time since its 1999 heyday, as it continued its push toward the 800-point mark. The general picture, along with the recovery of bond prices, points to a return to normality for the local market after the government's agreement with the country's creditors.

Bank stocks led the Greek bourse in a rare rally on Tuesday on news of a provisional agreement between the government and the country's creditors ahead of the May 22 Eurogroup, with the benchmark climbing to new highs and trading volume the greatest recorded to date this year.

Stocks across Europe felt the pressure on Tuesday after snap elections were called in Great Britain, leading the Greek market's benchmark almost 1 percent lower as trading resumed after the Easter break. Turnover was exceptionally low since many investors appeared to have extended their holidays.