ECONOMY

Index back at 4,900 points

Greek stock prices were marked by increased volatility last week. Imported jitters caused Monday’s gains to be shed by liquidations on Tuesday and Wednesday. The main reasons behind the instability were the opinion expressed by former US Federal Reserve Chairman Alan Greenspan that he saw the upside coming for bonds, and inflationary fears in the USA. But the climate abroad improved on Thursday, as US investors focused on the stronger-than-expected rise in the producer-prices index, and quarterly results by Bear Sterns and Goldman Sachs. Athens followed suit and the ATHEX general index closed at 4,900.51 points on Friday. Nevertheless, small-caps continued bucking the upheavals. The week’s most important news included the presentation of a bourse report showing that the reputation of the stock market has improved in the last two years, with a higher percentage of Greeks now willing to invest in shares. The rate of those with a positive opinion of the Athens Exchange now stands at 42 percent, against 33 percent in 2005, while 76 percent believe that the bourse makes a decisive contribution to the developments affecting the country’s economic environment. Also, 68 percent believe that important efforts have been made over the last two years to improve the operation and role of ATHEX. However, a large percentage of Greeks also retain a negative view of the stock market, not because they do not have the money to invest (just 2 percent), but because they are affected by its past lack of credibility(20 percent, against 12 percent in 2005) or because they lost money (19 percent against 6 percent).

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