Athens' stock market "crashes' by -6.28%

Destruction and turmoil after the sixth installment's postponement

 

A scenery of a stock market crash is evident in Athens, after Finance Minister Evangelos Venizelos’ speech did little to reassure investors on what the postponement of the Eurogroup meeting means over the disbursement of the sixth installment.

The general Index in the ASE has now dipped by 6.28% (!) to levels of 730 units, while intensifying pressures in Europe have led Frankfurt to losses of over 4% with other markets reaching losses of around 3%.

The Euro is collapsing to $1.32, a development which means that big market exports become even more attractive.

The banking index has lost over 11%, with National bank’s share declining by 14.5%(!), under 2.20 euros, as much as a kebab!

Similarly, Alpha Bank and Eurobank has been reduced by 10% and Piraeus Bank by over 18%.

OTE, which was downgrade by Moody’s has lost more than 6% of its value, reaching levels of under 3 euros.

At the same time, the Greek bonds spreads (which are once more ascending- 10 year bond at 2.140 units, signaling a borrowing cost of 25%...). German and Belgian  CDS have also shown a significant increase.

Five-year German CDS overtook 120 basis points – compared to 78 a month ago- with background estimates that the Eurozone’s largest economy will be called to pay more in order to support the “PIGS”. Meanwhile, in Belgium, after Dexi bank’s turmoil, Moody’s threatened the country with degradation, due to its exposure to Greek debt. Belgian CDS increased by 14 units to 286, quite close to the 22nd of September’s 298 units record.