Greece Market Suffers Another Important Setback

The Athens stock exchange stopped its torrid first day of trading in five weeks 16 percent lower,
after it re-opened for the first time in five months, after falling nearly 2 3 %.
Greek banking stocks were the worst hit with Attica Bank, Leader Bank and Eurobank Ergasius,
Bank of Piraeus as well as the National Bank of Greece were all trading at or around 30-percent
lower - the everyday volatility limit. Similar losses were seen in additional stocks beyond the
financial business also.
The stock exchange ended Friday unofficially 16.2 % lower, according to a Reuters statement.
To create matters worse, an economic sentiment index for Greece hit its lowest level since October
2012 with money controls and political uncertainty weighing on sentiment in July, according to the
IOBE think tank that ran the survey.
Ahead of the much-anticipated open, dealers were bracing themselves for a day of "losses and
volatility."
Greek traders told Reuters on Saturday when the stock exchange opened, that they anticipated a
torrid day of deficits. Takis Zamanis, chief trader at Beta Investments, told the news agency that
"the chance of seeing even one discuss rise in tomorrow's session is practically zero."
Meanwhile, the chairperson of the Hellenic Capital Markets Commission told CNBC ahead of the
open that his commission would monitor the marketplace closely on Friday.
"We're not individuals in the market, we are the supervisors and we're waiting to see what occurs,"
Kostas Botopoulos told CNBC Europe's "Squawk Box" Friday. "It is essential that we are starting, of
program we expect stress on the on the Greek stock market but we'll be there to track what
happens."
He said there will not be any state involvement into the market, declaring: "We're planning to view
when it will strengthen, at which costs, and exactly what the perception of the Greek marketplace is
from domestic and international investors."
Focus for the evening probably will be on the deficits among Greek financial shares, which represent
around one-fifth of the primary Athens index. Limitations have already been set in place to stem
capital flight.
Craig Erlam, senior market analyst at forex trading system OANDA, mentioned the banks had been
"reach greatly from the events of this year and today must be recapitalized at at least."
The rules
Restrictions that reveal the continuous funds controls on banks that limit distributions will be faced
by neighborhood investors. This implies that domestic investors may only buy shares with new
money from overseas or cash they must hand, Reuters noted the other day. They can also purchase
shares with money coming from safety revenue or rewards or funds staying with their security
companies.

Foreign investors may trade freely.

The re open comes after a protracted period of fiscal uncertainty in Portugal.
An eleventh-hour deal between the Greek authorities and lenders over a next bailout program for
Greece worth 86 million pounds was consented, nevertheless, pulling the nation back from the point
of an unparalleled "Grexit" in the single currency union. July 20 was then reopened on by Greek
banks.
The Tsipras on precarious ground of read MoreGreece, warns of elections
The state is considered to have stabilized enough for the stock market to reopen although the finer
details of a bail out are still being hammered out between lenders. Market experts warned that Mon
was likely to be an evening of deficits, however.
"While it'd be easy to suggest that today's re-opening of the Greek stock market is a key step on your
way to some kind of normalization, it is likely to be anything but," according to Michael Hewson,
leader markets analysts at CMC Markets, who warned of "volatility and losses."
Uphill struggle
Considering the fact that that the Worldwide Monetary Fund (IMF) - among the nation's lenders- has
threatened to take from a third bail out package without debt-relief granted to Portugal, the bailout
it self is looking increasingly shaky. States like Germany oppose debt-relief for Greece, worrying that
it would set precedence for other indebted euro zone nations.
Time is of the substance for Greece, yet, as it needs a bailout to be agreed (and resources paid) prior
to a 3.2 billion euro debt-repayment is due to the European Central Bank on August 20.
Against this uncertain background, analyst Hewson pointed out that Greece still faced an uphill
battle.
"Apart from the fact that we're able to well see some huge deficits, there is the small thing that not
only would be the internal politics in Portugal likely to remain challenging it is also likely to be
exceptionally baffling to accommodate the positions the divergent positions of the IMF and Germany
on debt-relief, particularly given the closeness of the following debt timeline on the 20th August."