ECONOMY

Bank stocks lose 23 pct in just two days

The market’s disappointment with the formation of the coalition government by SYRIZA and the Independent Greeks, which Moody’s qualified on Tuesday as a “credit negative event,” and the threat the new administration poses to the credit system’s stability inflicted fresh losses on the local bourse on Tuesday, with banks left reeling for a second day in succession.

The Athens Exchange (ATHEX) general index closed at 783.53 points, shedding 3.69 percent from Monday’s 813.55 points. The large-cap FTSE/ATHEX 25 index contracted 5.04 percent to end at 239.09 points.

In the two sessions since Sunday’s election, banks have seen 23 percent of their stock value wiped out, as on Tuesday Eurobank dropped 12.90 percent, Piraeus gave up 12 percent and National fell 11.81 percent.

Public Power Corporation also suffered huge losses of 11.17 percent, as the choice of new energy minister – a declared opponent of privatizations – is expected to minimize the sell-off chances of PPC and grid network operator ADMIE.

In total 24 stocks posted gains, 86 showed losses and 16 closed unchanged.

Turnover amounted to 193.3 million euros, up from Monday’s 135.2 million.