Investors turn their back on the bourse

Last week, the latest threats of downgrades by Standard & Poor’s and Moody’s dominated the local bourse, which remains off of many investors’ radar, given that attention is now focused on the course of the 10-year state bond. The Athens Exchange (ATHEX) general index closed the week Friday at 1,913.16 points, recording a 0.75 percent decline from the previous week’s close at 1,927.62 points. The majority of foreign funds seem to have abandoned the Greek market, which is illustrated by the quite moderate transaction volume and the number of deserted stocks in the medium- and small-capitalization indices. Greek investors remain mere observers, limiting their interest in the dividend policy of industrial blue chips, as banks will not offer dividends in cash but in shares. Investors appear not only worried about the recession on the market and in the country in general, but also about what the government plans do in 2011 and 2012, a matter on which it has said next to nothing so far.

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