Viohalco

Growing optimism among traders and investors that this month’s elections will not result in a leap into the unknown for the economy, reflected also in statements by Finance Minister Gikas Hardouvelis, gave local stocks fresh impetus on Friday, although turnover remained very low in what was the first session of the new year.

The stock market regained its composure somewhat after Parliament’s widely anticipated failure to elect a new president and Prime Minister Antonis Samaras’s announcement of general elections next month, as losses of up to 11 percent in afternoon trade were reduced to less than 4 percent by the end of the first session after Christmas.

A slight improvement in the coalition government’s poll ratings and in its chances to gather the votes needed for a president to be elected later this month following positive statements by a number of independent deputies, has started to shift the mood on the local market after last week’s sell-off, leading to a small recovery on Monday.

Black Tuesday’s sell-off continued during early trade on Wednesday at the Athens bourse, with the benchmark down more than 4 percent at one point. However, most stocks managed to contain their losses, and gains by some of the previous day’s biggest losers, including MIG and PPC, limited the damage to a drop of just 1 percent at the end of the session.

Traders hardly batted an eyelid at the government’s positive result in the parliamentary vote for the budget, keeping most of their attention firmly fixed on developments on the troika front. Accordingly the Greek bourse saw little action, with the benchmark refusing to give any ground and remaining afloat for one more day on Monday.

The prospect of convergence between Athens and its creditors on a technical extension of the Greek bailout agreement, coupled with some signs that Parliament may elect a president and prevent snap polls sent stocks soaring on Friday, though this time it was non-banking blue chips that led the way.

Investors’ wait-and-see stance regarding Greek stocks left the benchmark virtually unchanged on Monday, with the smattering of gains recorded during the day evaporating by the end of the session. Moody’s decision to postpone its revision of Greece’s credit rating contributed to the reduced trade at the start of the month, with turnover dropping to very low levels.

The last hour of trading on the Greek bourse on Tuesday generated significant losses for the majority of stocks despite assurances by the finance minister that progress was being made in talks with the country’s creditors.

The Athens Exchange (ATHEX) general index closed at 962.05 points, shedding 2.83 percent from Monday’s 990.11 points.

The Greek bourse continued rising on Thursday, albeit at a much slower pace due to investors exercising caution ahead of the results of Athens’s negotiations with its creditors and Fitch’s credit rating report.

Turnover at the Greek bourse slumped to a 14-month low on Monday as investors hold back due to the uncertainty hanging over negotiations between the government and its creditors.

The Athens Exchange (ATHEX) general index ended at 881.76 points, shedding 1.01 percent from Friday’s 890.74 points. The large-cap FTSE/ATHEX 25 index contracted 1.11 percent to 284.65 points.