ECONOMY

National’s reverse split drags index below 1,100 pts

The Greek bourse continued its downward slide for a second day in a row on Tuesday, and at a higher rate, as bank stocks are proving extremely volatile as they undergo recapitalization.

The Athens Exchange (ATHEX) general index closed at 1,090.89 points, shedding 3.96 percent from Monday’s 1,135.83 points. The large-cap FTSE/ATHEX-25 index contracted by a considerable 5.54 percent to end at 372.74 points.

National Bank’s announcement that it is planning a 10-to-one reverse stock split, made after the end of Monday’s session, had a significant impact on Tuesday’s trading, with the lender’s stock losing over a quarter of its value (down 26.75 percent).

The stock will stop trading for four days as of Friday, according to bourse regulations regarding reverse splits.

The bank index fell by 18.96 percent as Eurobank Ergasias slumped by 26.07 percent and Piraeus declined by 21.48 percent, though Alpha fared better, shedding just 0.88 percent.

Duty Free Shops, which added 3.13 percent, and Corinth Pipeworks, which grew by 2.19 percent, outperformed.

In total 52 stocks registered gains, 107 suffered losses and 20 remained unchanged.

Turnover amounted to 161.5 million euros, down from Monday’s 181.4 million.