Stocks tumble on bank earnings worries

Banks tumbled yesterday, dragging the broader market down to a new year-low, as investors bet banks’ earnings recovery was not around the corner. The bourse’s bank index fell 2.87 percent, with the benchmark general index sliding 2.63 percent to 1,745.26 points. «Investors are discounting that there will not be any recovery in nine-month earnings for the sector, as banks had said when they released their first-half results,» said analyst Elias Lazaris at Artion Securities. «The falls are a bit exaggerated. With such low volume, the appearance of any selling makes a difference,» he said. Blue chips on the bourse’s FTSE/ASE-20 index ended 2.83 percent lower at 870.69 points. Telecoms fell 3.06 percent. Mid-caps lost 3.04 percent and small-caps, 2.82 percent. Turnover came to 66.51 million euros, from 60.93 million euros on Friday, and 17 million shares changed hands. Losers beat winners 320 to 26, while 16 shares were unchanged on 362 traded. (Reuters)