BUSINESS

ATHEX: Draghi’s words turn stock rise into decline

TAGS: Stocks

The impact of the statements by European Central Bank Governor Mario Draghi against reinstating a waiver on Greek bonds so they can be used as collateral for cheaper loans was immediate on the local stock market on Thursday. The early gains turned into losses for most stocks, with banks predictably bearing the brunt.

The Athens Exchange (ATHEX) general index closed at 639.19 points, shedding 0.92 percent from Wednesday’s 645.10 points. The large-cap FTSE 25 index contracted 1.49 percent to end at 176.07 points.

The upward momentum created by the approval of the new austerity package voted on 12 days ago evaporated very quickly as,  in the eyes of many investors, the government appears incapable of implementing the agreement with its creditors.

Banks dropped 3.07 percent, as National declined 4.23 percent and Piraeus gave up 3.70 percent. Eurobank and Alpha followed (down 2.54 percent and 2.49 percent respectively). Motor Oil expanded 1.28 percent and Public Power Corporation was up 1.21 percent.

In total 38 stocks reported gains, 61 registered losses and 17 remained unchanged.

Turnover amounted to 60 million euros, down from Wednesday’s 75.1 million.

In Nicosia the general index of the Cyprus Stock Exchange continued its ascent, rising 1.46 percent to close at 69.44 points.

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