Athens Stock Exchange in free fall: New bank liquidations and weekly “dip” -3.7%

The Greek stock market again showed its inability to set “mounds”, with sellers maintaining the lead for a fifth consecutive day. In addition, the previously 1,400 support point turned into resistance. Apart from banks – the familiar negative protagonist – the energy sector also exerted strong pressure on the board.

Specifically, in Friday’s (25/10) session, the General Index fell 12.35 points or -0.88% to close at 1,390.25 points, with a daily high of 1,404.54 points and a daily low of 1,387.42 points. This is the worst close in 11 weeks “depth” and specifically since August 9 (1,383.31 points). The GD fell -3.69% in the 5-day and this year’s performance is limited to +7.51%.

The banking index was at a 9-month low as the last “stronghold”, located in the August 5 sell off, was removed. Now, banks are trading at prices not seen since late last January. A new negative record of almost a year for Alpha Bank, followed by Ethniki and Piraeus at 6-month and 4-month lows, respectively.

The energy sector had its… day, with Cenergy Holdings and Metlen posting strong losses, correcting again after both stocks’ upward reaction on Thursday. However, the stock that caught the eye was Motor Oil, which fell below 20 euros for the first time in almost two years, specifically since November 2022.

No room for reaction – Not enough results

Systemic banks remain in focus as they will report their 9-month financials in the first ten days of November. The first results announced during the week by Metlen, Sarantis and Papoutsanis were not enough to put the stock market back on an upward trajectory. As a reminder, the Exchange will be closed on Monday due to the national anniversary of October 28.

An additional factor of uncertainty is the US presidential election and pressure on Wall Street in the wake of recent historic highs. The potential negative impact of recent interest rate cuts created a good reason for a correction overall in global markets, several of which were trading at record levels.

In Athens, the banking sector was hit hardest. Moreover, it shows that it has no reserves of strength, having “dried up” due to capital increases and placements. At the same time, “fresh” money is absent, so that the domestic market is limited to “recycling” existing funds, with no room for reaction.

Read more financial news at Newmoney.gr

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