EYDAP

Perpetual warnings about an ?accident? and threats of a Greek referendum continued to aggravate the mood in the local economy on Friday, as reflected in the Athens stock market, which lost over 3 percent.

Investors appeared indifferent to the start of negotiations between Athens and its creditors? technical experts on Thursday, as the stock market slipped lower, mainly due to the drop in mid-caps.

The marked rise in turnover at Tuesday?s ATHEX session came about mostly during the containment of the early gains posted in the wake of Monday?s Eurogroup, as the benchmark?s 4 percent morning gains proved no more than a flash in the pan. Trading volume started picking up during the day as the sellers resurfaced to create a mix of green and red on the stock chart.

Traders rushing to exit the Greek bourse at the end of Thursday?s session led to the benchmark closing on the day?s low, as investor jitters rose on the scrapping of the euro cap on the Swiss franc along with uncertainty regarding the formation of the next Greek government.

Revelations about the major shortfall in December state revenues ? with a direct impact on the primary surplus ? and the cacophony of statements from election favorite SYRIZA candidates on the future of relations with the country?s creditors put an end on Wednesday to a series of gains for the Greek benchmark that had stretched to three sessions.

The return of deflation to the eurozone and continued talk about a possible Greek exit from the economic and monetary union inflicted fresh losses on local stocks on Wednesday, although these were contained to less than 1.5 percent for the benchmark ? from over 3.5 percent earlier in the day ? marking a new 26-month low.

The return of the prospect of a Greek exit from the eurozone according to foreign reports and the continuing fragmentation of the local political landscape led to a mini sell-off on Monday, with a relatively increased trading volume.

Non-banking chips led the local stock index to a significant recovery on Wednesday before the first vote for a new president took place, with traders buying into the optimistic scenario from the government camp that “it will be alright on the night” of the third vote on December 29.

Traders hardly batted an eyelid at the government’s positive result in the parliamentary vote for the budget, keeping most of their attention firmly fixed on developments on the troika front. Accordingly the Greek bourse saw little action, with the benchmark refusing to give any ground and remaining afloat for one more day on Monday.

Hedge fund manager John Paulson, whose company Paulson & Co holds a 5 percent stake in EYDAP and Eurobank, told the 16th Capital Link Invest in Greece Forum in New York on Monday that he is freezing his plans to invest further in the country due to the political instability.