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Chaos is reigning on the Athens Stock Exchange following the decision of the largest foreign investors to dispose of their shares in Greek companies and financial institutions. Just a day after the statements of members of the new Greek government on stopping the privatisation and retaining the state ownership of large Greek companies the index of the Athens Stock Exchange has plunged by 7% to reach 730 basis points. Analysts do not exclude that it may even fall to 500 basis points over the coming days.

The banking index has moved down on the stock exchange board for another day in a row, losing 23% of its value and reaching its lowest position over the past almost 30 years. The shares of Piraeus Bank have fallen by 6.68% to amount to 0.6570 euro, of the National Bank of Greece by 7.4% to 1.04 euro, the shares of Alpha Bank have collapsed by 17.03%, amounting to 0.3560 euro, and those of Eurobank have fallen by 7.41% to amount to 0.1250 euro.

The shares of the National Public Power Corporation DEI have fallen by 6% after the statements about the suspension of its privatisation. The shares of the Organisation of the port of Piraeus have fallen by 7.69% for the same reason too.

The interest rate on Greek government securities has dramatically increased, reaching 16% for 3-year bonds and exceeding 10% for 10-year bonds.

Meanwhile, a report by Citi Bank indicates that 10 billion euro in deposits had been withdrawn from the Greek banks during the election campaign in January. According to the American bank, the deposit basis has reached its 2012 crisis level, amounting to about 151 billion euro. The report states that the withdrawal of deposits on the day after the elections, Monday, 26 January, had significantly decreased compared to the previous week. Citi Bank attributes the withdrawal of deposits to concerns about introducing a tax on savings and not to the fear of exiting the euro zone.

To be continued