Greek shares collapse by more than 20% as its market re-opens for business

Otmane El Rhazi from Mindful Money » Shares.

Greece’s main stock exchange the Athex collapsed on Monday after trading re-commenced following a five-week closure period.

The index plummeted by as much as 23% at one point with the country’s main four banks – Piraeus Bank, National Bank, Alpha Bank, and Eurobank the worst hit, according to BBC News.

It has been widely predicted that shares would fall sharply when the market eventually re-opened after the prolonged closure.

Chris Beauchamp, senior market analyst, IG said: “Having been shut out for so long many will simply be keen to escape from Athens as quickly as possible and find havens for their money that do not require being on ‘crisis watch’ all the time.”

Economic data released on Monday showed that Greek manufacturing activity plunged in July to its lowest level on record.

The purchasing managers’ index (PMI) for the sector from research group Markit, dropped to 30.2 points, the lowest reading since 1999 – anything of 50 and above points to growth.

In July, Greece eventually sealed a bailout deal with its creditors but the European Commission anticipates that the embattled country will fall back into recession this year, with the economy contracting by between 2% and 4%.