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Unprecedented collapse of the Athens Stock Exchange

15 October 2014 / 18:10:46  GRReporter
1923 reads

Over the course of just two days the Athens Stock Exchange has lost over 100 points and the development of today's session is taking a dangerous turn, as mass and faster liquidation of positions is underway.

In particular, at 4:27 pm, the benchmark index declined by 6.79% to 883.78 points, having decreased earlier by 10.05%. The daily turnover was around 157 million euro. FTSE25 lost 9.89% to 278.57 points while the banking index reported losses of about 14.17% to 109.55 points.

It seems that nothing can stop the liquidation of positions, which clearly shows the fears of tomorrow in Greece. Extremely negative is the fact that all companies are carrying out such liquidations, involving listed companies that have a stable and positive outlook.

The fear that the country has already entered a prolonged election period on the one hand and the government's plans for the withdrawal of the International Monetary Fund from the support programme to the country on the other made institutional investors liquidate their positions ignoring margin calls.

For example, "Intralot" reported losses of 8.80%, "GEK Terna" 12.63% and "Terna Energiaki" 11.27%. "Viohalko" reported losses reaching 11.11%, "Mitilineos" 8.56% and the Public Power Corporation 8.98%. The losses reported by "ELLAKTOR", "Titan", OPAP and MIG are in the range of 6% to 8.8%, and the picture in banks is dramatic. The National Bank recorded losses in the order of 2.88%, Alpha Bank of 1.61%, Piraeus Bank 4.31% and Eurobank 8.30%.

Meanwhile, the yields of Greek 10-year bonds increased today, reaching 7.65% whereas the spread on German benchmark bonds amounted to 683 basis points.

Tags: Athens Stock ExchangeCollapseLiquidation of positionsIndexes
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