ECONOMY

Deutsche Bank report sends banks tumbling

The benchmark Athens Exchange (ATHEX) index declined for the second time this week, dropping 69.08 points, or 1.7 percent, to 4,068.32. The FTSE/ATHEX 20 index of the country’s biggest companies lost 2.1 percent to 2,116.57 points. National Bank lost 4.2 percent to 33.84 euros, the lowest this month. Deutsche Bank reduced its recommendation for NGB to «hold» from «buy,» slashing the price estimate to 40 euros from 55 euros. «As Turkey represents 30 percent of National Bank’s earnings, we expect the deterioration in the economic and political outlook in Turkey to affect the share price,» Paris-based analyst Gaelle Cibelly said in a note. EFG Eurobank fell 3.8 percent to 19.34 euros, after Deutsche Bank downgraded the stock to «sell» from «hold» and lowered its price estimate on the shares to 19 euros from 25 euros. Forthnet fell 8.7 percent to 6.30 euros, the most in more than a year. Greece’s second-biggest Internet company may pay 550 million euros to acquire NetMed NV, a Greek and Cypriot pay-television company. Hellenic Exchanges dropped 2.2 percent to 15 euros. ATHEX may lose its developed-market status from the London-based FTSE Group, being downgraded to advanced emerging-market status, Reuters said. (Bloomberg)