Greek Bank Shares Drop For Third Day After Market Reopen

Greek bank shares have fallen sharply for a third day, continuing the trend seen since the stock exchange re-opened at the start of the week.

The banking sector share index fell 20%, after falling by about 30% on both Monday and Tuesday.
Individual shares are not allowed to drop by more than 30% in one day on the Athens market.
Overall, the Athens stock market was down 2.3%. The market re-opened on Monday following a five-week closure.

Trading was halted after 26 June, just before capital controls were imposed in an effort to stop money leaving the country during the height of the Greek debt crisis. Greeks are still limited to withdrawing €420 a week in cash.

“The market is looking for the bottom, we are not far away from it,” Alexander Moraitakis, head of Athens-based Nuntius Securities, told Reuters.

“But bank shares are still pounded by selling pressure due to dilution fears, given their need to recapitalise.”

Greek banks have been hit by a flight of deposits as customers send their money abroad or hoard it as cash. The banks account for about a fifth of the Athens index.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza