Economic indicators

Buying interest in Greek banks on the Athens Exchange (ATHEX) picked up on Wednesday as the pressure on European markets eased, allowing for a technical recovery of local credit stocks after they slumped to a new 32-month low on Tuesday.

The drop was evenly spread across the board at the Greek stock market on Tuesday, with non-bank blue chips sharing the pressure that the credit sector has been suffering over the last few weeks - as the benchmark continues to register new 18-month lows. Although the day started with moderate gains, it ended with the indexes deep in the red again.

High taxes, a huge administrative burden due to the ubiquitous red tape, and a local justice system that is not seen as particularly independent continue to weigh on Greece's position in the Economic Freedom of the World chart.

Trader disappointment on Monday over Moody's decision not to issue its verdict on the Greek economy last Friday, amid the general negative mood in markets due to the mutual tariffs on US and Chinese goods, put fresh pressure on most local stocks, with the low turnover mirroring investor reluctance.

The improvement in the mood on global markets along with the rise in the prices of Italian and Greek bonds and Prime Minister Alexis Tsipras's rather measured financial pledges at the Thessaloniki International Fair over the weekend - which appeased traders - led to a significant rebound of Greek stocks on Monday after a week and a half of constant decline for the benchmark.

The benchmark of the Greek stock market dipped to a new 17-month low on Wednesday as pressure continued not only on bank stocks but also across the blue chip board as well as on bond prices. A balancing session is probably due.

Greek bank stocks suffered increased pressure on Tuesday, which also had a knock-on effect on other major blue chips, resulting in significant losses for all indexes at Athinon Avenue.

The payment of stock dividends at Athinon Avenue, the negative climate on international markets and the increasing devaluation of the market (through the ongoing Folli Follie saga and the loss of buying interest in mid- and small-caps), led to significant losses for the majority of Greek stocks on Thursday.

The Athens bourse spent almost the entire session on Wednesday showing benchmark and blue-chip gains, only for sellers to reverse the trend in the closing auctions, wiping out the advances. Nevertheless, growing stocks outnumbered decliners.

The June triple-witching, the FTSE index rebalancing and the concern generated among banks by the forced transfer of 7 billion euros of state entity reserves to the Bank of Greece saw bank stocks slump at the end of the week, which weighed heavily on the benchmark at Athinon Avenue.