ECONOMY

Stock traders none too pleased with election result

The market offered its response to the Greek election results on Monday, sending the benchmark of the Athens bourse 3.20 percent lower. There was also no mistaking investor opinion regarding the poll outcome and the formation of a coalition government by anti-bailout parties SYRIZA and the Independent Greeks in terms of banks, with their sectoral index plunging 13.26 percent on the day.

The Athens Exchange (ATHEX) general index closed at 813.55 points, shedding 3.20 percent from Friday’s 840.44 points. The large-cap FTSE/ATHEX 25 index contracted 5.60 percent to end at 251.77 points, but mid-caps contained the benchmark losses with their 1.32 percent growth.

The likelihood of the new government making changes within the managements of the country’s systemic lenders resulted in the free fall of bank stocks: Piraeus lost 17.61 percent, National contracted 13.01 percent, Alpha lost 11.53 percent and Eurobank declined 10.40 percent. The market is clearly concerned about the extent of government interventions – given that the state retains control of all Greek lenders – and it is estimated that the changes to be promoted will signal the general attitude of Alexis Tsipras’s government toward the economic sector.

In total 55 stocks recorded gains, 49 registered losses and 14 remained unchanged.

Turnover came to 135.2 million euros, down from last Friday’s 243.7 million.