Credit sector stocks slide on capital increase plans

Concerns that local banks are planning to resort to fresh share capital increases without the participation of old shareholders – in a bid to reduce the stakes that the bank bailout fund currently holds in them – led Greek credit sector stocks lower on Wednesday, as the elation at the stress test results has all but worn off. The rest of the market followed suit, despite a promising start.

The Athens Exchange (ATHEX) general index ended at 933.11 points, shedding 2.67 percent from Monday’s 958.69 points. The large-cap FTSE/ATHEX 25 index contracted 2.54 percent to 305.63 points.

Among the five blue chips that did show gains OTE telecom posted the biggest (up 3.20 percent), while Piraeus Bank lost 8.46 percent, Hellenic Exchanges declined by 8.13 percent and Ellaktor gave up 7.20 percent.

In total 35 stocks headed north, 68 suffered losses and 24 stayed put.

Turnover amounted to 153.3 million euros, down from Monday’s 176.4 million.