Bourse still in search of direction

The positive mood in Europe regarding the euro and the course of the Greek reform process in particular has provided some impetus on the local stock market, but the latter is still suffering from subdued cash flow. The Athens Exchange (ATHEX) general index starts the week at 1,542.99 points, 4 percent higher than a week earlier. Last week saw the main indices rebound after hitting their lowest point in the last decade during the previous week. Over the last eight months the Greek bourse seems to have been drifting aimlessly with no set course to follow other than developments on the fiscal front. The market appears reluctant to allow a new grace period for the Eurozone and International Monetary Fund-backed support package or the country’s potential as the specter of an extended recession has driven many investors away. The latest negative development was Moody’s announcement last Monday that it was downgrading Greece’s debt rating by no fewer than four notches. However, investors have kept their cool and are holding on to their multimillion losses, betting on an improvement in state finances.