ECONOMY

Greek stocks rise after two-day drop on optimism over debt talks

Greek stocks advanced on optimism the nation will come to a bailout agreement with its creditors.

The ASE Index added 1.1 percent to 847.53 at the close of trading in Athens. Greece may request an extension of its loan agreement for six months, according to a person familiar with the matter. That could ease a standoff with creditors over the country’s future financing.

The ASE has rallied 17 percent in February as the new government renegotiates its debt terms. Greece’s current rescue plan expires at the end of the month and failure to reach a deal risks triggering a chain reaction that could put the country’s euro membership in jeopardy.

Greek stock volatility has risen since former Prime Minister Antonis Samaras announced presidential elections in December. This year, the ASE had average daily moves of 3.6 percent through the end of last week, compared with 1.6 percent in 2014, data compiled by Bloomberg show.

[Bloomberg]