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Brutal second day for Greek bank stocks

Tuesday, August 04, 2015 - 01:33

Greece's banking stocks have plunged for the second day in a row, dragging the main Athens index down and reflecting the country's continuing financial and economic woes. As Joel Flynn reports the overall Athens index was down about 4 percent after opening.

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It wasn't the wave of red that some had expected. Greek stock losses slowing on its second opening since the end of June. But amid the blue and green of stabilising shares, another day of red ruin for the banks. The main banking index of Greece's four major lenders down more than 29 percent at the open. Athens stocks are limited to a 30 percent daily loss - banks hit that limit on Monday. Merit Securities Analyst Nikos Kafkas. SOUNDBITE: Merit Securities Analyst, Nikos Kafkas, saying (Greek): "I think that open was somewhat expected across all sectors, in particular the banking sector which closed down at the limit. It looks like it will be the same today, for obvious reasons." Monday's losses wiped nearly 8 billion euros from market value. A five week shutdown and capital controls were supposed to stop a flight of euros from Greece. In that time the government has agreed to accept a third bailout worth up to 86 billion euros. It says talks about the reforms needed to secure that deal will be concluded by August 18 - just two days before another debt deadline. But political - as well as economic - instability is also threatenng the country, says CMC Markets Michael Hewson. SOUNDBITE: CMC Markets Analyst, Michael Hewson, saying (English): "Prime Minister Tsipras needs to overcome opposition within his own Syriza party, what he doesn't really want to have to do is drive through the reforms with the help of the opposition. And then you've got the splits between the quadriga of the creditors." The stocks fall didn't spill over the Greek border. And some local businesses saw a boost. Aegean Airlines and gaming group OPAP just two up shortly after the open.

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Brutal second day for Greek bank stocks

Tuesday, August 04, 2015 - 01:33