ECONOMY

Slump across the board paints gloomy picture

Greek stocks had their worst slump in two months, proving how prone they are to overreacting to a negative climate on foreign markets. The Athens Stock Exchange (ASE) general index shed more than most other European bourses, plummeting 3.10 percent to 3,506.72 points. Stockbrokers argue that the overreaction is the result of the market’s disorientation, as it remains unclear whether foreign investors consider the ASE a developed or an emerging market. All three capitalization indices and 10 of the 17 sectoral indices lost more than 3 percent The blue chip FTSE/ASE 20 was down 3.18 percent, the FTSE/ASE Mid-40 slid 3.01 percent lower and the FTSE/ASE Small-Cap 80 lost 3.93 percent. Viohalco headed blue chip losers by shedding 5.17 percent. Eurobank, Coca-Cola HBC and Intracom lost more than 4 percent, while Alpha Bank, ATEbank, Emporiki, National Bank, Public Power Corporation and Hellenic Petroleum were more than 3 percent lower. The media index saw the sharpest fall, 4.67 percent. Technical analysts say the picture does not look at all good and that if the index falls below the 3,490-point level, it is certain to head toward the 3,380-point net, putting even medium-term prospects in doubt. Turnover totaled 231.67 million euros.