The Athens Stock Exchange reopens and collapses: -23% with bank stocks down to 30% – Il Sole 24 Ore

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This entry was posted on August 3, 2015 at 9:22.
The last change is the August 3, 2015 at 11:12.

It was not a surprise but the thud is remarkable. as of the opening of the scales there was a sharp decline for the Athens Stock Exchange, which reopened this morning after 5-week break. The last session of trading dates back to 26 June. The benchmark index in Athens opened with a thud of 22.9%. Heavy sales of all sectors, including financials, red 20%, dragged down by the first Greek commercial bank, the National Bank of Greece, down 30%.

Down the bank in view of the recapitalization
A drag to the bottom of the list are the bank stocks that need to be recapitalized with at least 25 billion Euros to come from the proceeds of a fund for privatizations. But if they do not get away from that, as is likely, then the ESM would touch to open the purse strings and shell out cash or indirectly through a loan, however, it would increase the debt directly or through an injection of capital in shares the four major Greek banks. At that point, however, would have to apply, according to the rules of the ESM, the bail in, that the participation in losses for shareholders, bondholders and depositors up to 8% of liabilities (liabilities) of banks saved. It would be a gesture of trust important this choice to enter directly in the equity of Greek banks by creditors but if Europeans were to lower unsecured would be a blow to Greek companies that are holders of the 20 billion euro unsecured kept in current accounts of Greek institutions (there are a total of 120 billion Euros in bank accounts). The game is also very important because it would be the first application of the new directive on bank bailouts, which should enter into force only in 2016, as the Austrian Constitutional Court has rejected the Austrian law that would apply in advance to the case of the rescue of Hypo Alpe Adria Carinthia and bad bank on putting everything in the hands and into the coffers of the local government.

The thud of Athens not infect European stocks
The thud of Athens is not influencing the performance of the main European stock exchanges. The indices of the Old Continent have had a slight decline and then reverse course and go into positive territory. London rocks on equal weighted by mining, affected by the decline of Chinese SMEs. While Europe has resumed negotiations between Greece and its creditors, from China it arrived in fact a disappointing given on SMEs, which in July and ‘fell to the lowest since November 2011.

A Marketplace Telecom runs on merger rumors Wind and 3Italia
Starting sitting cautious Milan Stock Exchange, with the FTSE MIB oscillating around parity. Telecom runs, the rumors appeared on Sole-24 Ore of close to the merger between Wind and 3Italia. In light Autogrill, Mediolanum, well Fca and Saipem. Holding back the list with the bank Mediobanca, UBI and MPS. The spread BTP-bund down to 111 points.

Italy: PMI manufacturing index jumped to 55.3 in July
The index of manufacturing production in Italy in July recorded the biggest increase over four years. The index of purchasing managers in the manufacturing sector calculated by Markit / Adaci fact rose to 55.3 from 54.1 in June, which in turn was down from May. And ‘it is increasing more’ fast since April 2011 for the index. Demand increased, it said in a note to Markit-Adaci, has stimulated new hires while higher sales prices cotrobilanciato higher costs.

In Greece PMI index to its lowest for 16 years
Crolla instead the activity of the manufacturing sector in Greece in July, reaching its lowest for 16 years. The PMI index prepared by Markit fell to 30.2 points, its lowest since the beginning of the series, remaining well below the 50-point threshold that separates growth from contraction.

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