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Rise of the Athens Stock Exchange by 10%

11 May 2010 / 08:05:18  GRReporter
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Rise reported the Athens Stock Exchange with an increase of 10 percent of its total index for only one day. So it followed lively recovery in global markets with which they welcomed the package of one trillion Euros, with which the eurozone countries barricaded their common currency. 

Shares of Greek banks rose by around 15% on the first day of the week. The total turnover of the Greek market exceeded €219 million, with 182 companies on the exchange reported growth of their securities, 23 are in stagnation and only 23 others have noted decrease. Meanwhile, the spread index of Greek government bonds dropped significantly to 450 basis points, since last week it reached 1000 basis points when the market closed on Friday last week. 

The decision of EU leaders to form a rescue mechanism that will protect the eurozone from domino-effect of failure, increased the level of the EUR against the USD and financial markets in Europe and Asia recorded significant gains. The 16 country leaders using the single European currency have agreed to the formation of the so-called "stabilizing mechanism” that will prevent crisis like this in Greece. They agreed among themselves on providing €720 billion for eurozone countries, which are experiencing financial problems. The new measure was adopted after the collapse of international markets on Friday last week as a result of the continuing strong crisis and social unrest in Greece. The creation of the new European financial rescue mechanism noted the expected positive effect over international markets, which reported high growth in profits after last week’s losses. 

The slight increase of foreign investors on the Athens Stock Exchange is assessed as positive and in May they accounted for about 50.4 percent of all "players" on the Greek market. Their Greek colleagues have about 48.4 percent share of the Greek financial market. Sales of foreign investors have a combined turnover of around €368.15 million and their Greek colleagues have made sales totalling €349.46 billion. The total value of trades on the Athens Stock Exchange in April reached €4.7 billion, which is 22 percent higher than the turnover in March this year. 

Despite the positive news on Monday Moody's warned that it will make a new reduction of the credit rating of Greece and will place the Greek government bonds into the category of junk - too speculative, risky and not advised to investors. If that happens, Moody's will be the second of the three major credit rating agencies after  Standard & Poors to evaluate the Greek government bonds as junk.

Tags: Greece economy crisis measures reforms stock exchange Moodys credit rating
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