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Free fall of the Athens Stock Exchange

11 December 2014 / 16:12:14  GRReporter
1866 reads

The political instability in Greece is having a dramatic impact on the Athens Stock Exchange and the government securities for the third day in a row. Following the black Tuesday and dark grey Wednesday, the stock index collapsed by another 5% today, reaching its lowest point in 2014. The listed companies lost 10 billion euro in capitalization today alone and turnover could not amount to more than 93 billion euro.
    The situation in the markets for government securities is not cheerful either. The interest rates on three-year Greek bonds have sharply increased to reach 10%, paradoxically exceeding the rates on 10-year bonds that are in the range of 8.8%.


     The global media are making gloomy forecasts about Greece’s future. Bloomberg agency and the Financial Times believe that Greece will leave the euro zone without affecting the rest of Europe. According to Reuters, the presidential elections arithmetic is wrong and there will be early elections in Greece.
     An analysis of Societe General Bank considers that the possible exit of Greece from the euro zone will have catastrophic consequences only for itself alone.

Tags: Athens Stock ExchangeCollapseCapitalization of companiesGovernment securities.Interest rates on bondsGreece and the euro zone
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