Confidence shores up local stocks

Last week, during which the crucial parliamentary votes for the midterm fiscal plan and the implementation law ended with victories for the government, concluded with most stocks posting gains on the local bourse following weeks of decline.

The Athens Exchange (ATHEX) general index ended on Friday at 1,308.48 points, adding 6.17 percent to the previous Friday?s close. The banks index in particular added a significant 11.73 percent.

Market observers suggest that the local market is entering a period of more stability, following the decision for the disbursement of the 12-billion-euro tranche to Athens by its international creditors.

Investors are confident that Greece?s European peers are determined not to allow the country to default, and are therefore placing their trust in banking stocks especially, also boosted by the debt-rollover plan sponsored by French and German lenders alike.

Another positive dimension is the increase in average daily turnover to just under 100 million euros, as the investing community is confident enough to proceed to greater risk-taking, Pegasus stockbrokers noted. This is likely to aid the rising course of prices in the new week as well.