Index

Steering clear of any anti-bailout rhetoric and offering lukewarm assurances of honoring Greece?s commitments, poll-leading SYRIZA leader Alexis Tsipras has fueled market hopes that the change in government expected after the January 25 election will not have too dramatic an impact on the country and the eurozone, leading the local stock market to further gains on Tuesday.

Local stocks failed to hold on to early gains at the Greek bourse on Thursday, as sellers proceeded to take the benchmark down to levels unseen since November 2012.

The Athens Exchange (ATHEX) general index closed at 761.66 points, giving up 2.06 percent from Wednesday?s 777.70 points.

The large-cap FTSE/ATHEX 25 index contracted 1.84 percent to end at 244.36 points.

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.

By Alan Soughley and Jonathan Morgan

European stocks advanced, rebounding after falling to their lowest level in almost three weeks.

The Stoxx Europe 600 Index added 0.3 percent to 332.68 at 8:04 a.m. in London. Stocks erased gains in the final hour of trading yesterday as banks slid, after having risen as much as 0.6 percent amid a recovery in energy shares.

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.

The climate in Greek manufacturing remained downbeat in December for a fourth month in a row, as the Purchasing Managers’ Index (PMI), compiled by Markit, remained below the 50-point level used to distinguish decline from growth.

Growing optimism among traders and investors that this month’s elections will not result in a leap into the unknown for the economy, reflected also in statements by Finance Minister Gikas Hardouvelis, gave local stocks fresh impetus on Friday, although turnover remained very low in what was the first session of the new year.

The year ended in the Greek stock market with annual losses of 29 percent for the benchmark, but Wednesday provided an unexpected rise to prices that left some observers wondering what it is they may have missed and the traders have already in mind.

Greek stocks presented a mixed picture on Tuesday, as banks and most blue chips headed south, while mid-caps and small-caps enjoyed gains and turnover slid to a more subdued holiday level.

The Athens Exchange (ATHEX) general index closed at 819.81 points, shedding 0.45 percent from Monday’s 819.81 points.

The stock market regained its composure somewhat after Parliament’s widely anticipated failure to elect a new president and Prime Minister Antonis Samaras’s announcement of general elections next month, as losses of up to 11 percent in afternoon trade were reduced to less than 4 percent by the end of the first session after Christmas.