Banks keep dragging stock market lower

The seventh consecutive session of losses for most banks (with a total decline of 16 percent) brought the benchmark close to 950 points on Tuesday. The recent rally that had seen the main index pushing the 1,000-point mark would need sustained support from non-banking stocks in order to continue in the long term, given the increasing weakness of the credit sector.

The Athens Exchange (ATHEX) general index closed at 951.05 points, contracting by 1.78 percent from Monday’s 968.29 points. The large-cap FTSE/ATHEX-25 index gave up 1.85 percent, ending at 322.41 points, although mid-caps sustained smaller losses, with their index shedding 0.75 percent.

Alpha Bank and Terna Energy posted the biggest losses among blue chips (5.88 percent and 5.57 percent respectively), followed by Jumbo, which declined by 4.16 percent. Frigoglass (up 1.51 percent) and Intralot (1.46 percent) were the day’s top earners. The three Cypriot banks sustained losses after their one-notch downgrades by Moody’s.

In total 50 stocks registered gains, 124 posted losses and 22 stayed put.

Turnover amounted to 67 million euros, down from Monday’s 89 million.