Greek stock market made a sharp drop of 865 points today, with Greek 10-year bond yields jumping to a 5-year high, reflecting the strong risk aversion of Greek assets.
General index closed with a loss of 2.72% at 862.55 points, while the yield on Greek 10-year bonds reached 4.3% today. Turnover amounted to 83.56 million euros, while for the week the general index lost 3.82%, and the banking index recorded a loss of 8.12%, the publication reports. FROM.
European Central Bank (The ECB) did not leave much room for misinterpretation of its short-term intentions to end its bond-buying program as two interest rate hikes, one in July (0.25%) and one in September. But this tactic is likely to affect weaker eurozone countries such as Greece or Italy, triggering a strong wave of risk aversion across many assets in the region.
Should I be worried? Market sentiment is such that efforts ECB policy tightening without a protective net for weak eurozone countries is doomed to failure. Because they may not be able to control inflation, but they will also affect growth. In other words, the interventions announced yesterday are considered insufficient to reduce inflationary pressures, but “sufficient” to provoke some increase in the cost of government borrowing.
Under these conditions, the Greek market experienced a significant protection index, which was reflected in the yield of Greek bonds, which today reached 4.3%, as markets are closed from July 1 as part of the quantitative easing program. In fact, the levels at which Greek bonds have been found are the highest since 2017, when the valuation of the Greek economy was still far from investment grade.
As for the securities of Mytilineos, Alpha Bank and PPC, they recorded the biggest losses, while the pressure received by Jumbo, Quest, Piraeus, Terna Energy, GEK Terna, Hellenic Petroleum, Eurobank, Viohalko and Ethniki was significant.
Falling shares EYDAPCoca Cola, OTEIPTO and ELHA topped 2% and Sarantis closed up 1.80%.
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