ECONOMY

ATHEX: Market seems disappointed with recap bill

athex-market-seems-disappointed-with-recap-bill

The likely need to transform senior bank bonds into shares and the uncertainty over the bank recap mechanism, as the relevant bill is quite unclear on the process, sent bank stocks considerably lower at the end of the week, with foreign investors appearing reserved regarding the process to be followed in the share capital increases.

The Athens Exchange (ATHEX) general index closed at 701.22 points, shedding 2.03 percent from Thursday’s 715.77 points. On a weekly basis it declined by 1.58 percent, but it has ended October with monthly gains of 7.19 percent.

The large-cap FTSE 25 index contracted 2.71 percent on Friday, ending at 209.49 points, with only four out of the 25 blue chips heading north.

The banks index dropped 5.67 percent, bringing its total fall for the week to 9.9 percent. Alpha Bank gave up 11.54 percent and National Bank conceded 7.12 percent. Jumbo outperformed, advancing 1.27 percent.

In total 32 stocks showed gains, 66 recorded losses and 10 closed unchanged.

Turnover amounted to 47.8 million euros, up from Thursday’s 43 million.