Volatile bourse in search of direction

The high volatility on the local bourse both before and after the announcement of Greece’s resorting to the European Union and International Monetary Fund bailout indicates the high uncertainty on the market and foreign investors’ reservations regarding the likely impact on local firms, and mainly banks. The Athens Exchange (ATHEX) general index closed the week last Friday at 1,857.96 points, recording a 6.88 percent drop from the previous week’s close at 1,995.24 points. The question for the first few sessions of this week is which way foreign capital managers will sway after liquidating a significant amount of their positions over the last few weeks. With most economists and investors agreeing that the 40- to 45-billion-euro bailout will serve to cover Greece’s fund requirements this year only, it is no wonder the market remains reserved. Finance Minister Giorgos Papaconstantinou’s current trip to the United States will doubtless indicate a certain direction as to what the markets can expect from now on.

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