FXStreet (Mumbai) – The stock markets in Greece reopened after a five-week closure to drop 23% with restrictions in place due to capital controls.
Bank stocks plunge
The benchmark ASE Index slumped a record 23% to 615.60. Shares in Piraeus Bank SA and National Bank of Greece SA fell 30%. The finance ministry on Friday said, with bank withdrawals limited, Greek traders will only be able to buy stocks, bonds, derivatives and warrants with new money such as funds transferred from abroad, cash-only deposits, money earned from the future sale of shares or from existing investment account balances held at Greek brokerages.
The trading on Greek bourses was halted in June after a Prime Minister Alexis Tsipras ended bailout talks with creditors by asking voters to decide in a referendum whether to accept the terms offered in exchange for emergency loans. The banks were forced to shut and capital controls were imposed.
(Market News Provided by FXstreet)