Greeces Banking Sector to Witness Bigger Weekly Loss
Published By : 07 Aug 2015 | Published By : QYRESEARCH
Greek banks are facing increasing selling pressure for many days as the market in the nation continues to be skeptical during a third bailout for the country; this is expected to occur by end of 18 August. Furthermore, the shares of the biggest bank in the country that is the National Bank of Greece are now in free fall and many have more than halved in their value after the reopening of the Athens Stock Exchange that happened recently.
Greek citizens fearful due to the loss of their savings are withdrawing money from the banks as fast as they can. According to several major banks around 20% or more GDP of the nation was withdrawn from the banks during the first half of the year 2015.
The Greece’s stock market has now reopened after observing a hiatus for five weeks and the nation’s banking sector index that is DTR, +17.78 per cent was shaved off a massive 64 per cent during the first three days of trading. This happened in increments of around 30 per cent each day, which was the daily average loss limit. This even comes as the wider Athex Composite Index that is the GD, +3.65 per cent was only lost by 19 per cent those days, when investors grappled with what’s next for the nation’s stock market after the government was able to avert an 11th hour default in the month of July.
These losses have come even after the banking index along with the Athex showed a rebound in Thursday’s trade which was up 13 per cent and 3.7 per cent respectively. The biggest losers in the Greece market were Piraeus Bank, Alpha Bank, Eurobank Ergasias, and lower and National Bank of Greece. Currently, the banks are surviving on a crisis lifeline provided by the European Central Bank via the emergency liquidity assistance.