Rowan Dartington’s Tim Cockerill comments on Greek stock markets

Rowan Dartington’s investment director Tim Cockerill comments on Greek stock markets reopening and the country’s economic outlook.

The Greek stock market opened for the first time in five weeks this morning. It was not a pretty sight. At the time of writing the Athens Stock Exchange (ASE) had fallen by -23.0%, the largest one-day fall in its history. Unsurprisingly, the largest losses were found in the banking sector. Piraeus Bank, the National Bank of Greece and Alpha Bank all found themselves -30.0% lower at the open, the daily limit for Greek shares.

Whilst the size of the decline is eye opening, it wasn’t unexpected; traders were bracing themselves for a day of extreme losses and volatility. Their concerns have been proven accurate and the ASE now finds itself at its lowest level since 2012.

Further bad news arrived in the form of a manufacturing survey (the Purchasing Managers’ Index) for July. The index, which measures productivity in the sector, slumped to its lowest ever recording of 30.2 (anything above 50 indicates expansion).

According to Markit, the company who compiles the data, Greek factories “faced a record drop in new orders and were often unable to acquire the inputs they needed, particularly from abroad, as bank closures and capital restrictions badly hampered normal business activity”. In essence, the Greek manufacturing sector has collapsed in recent months and the sheer magnitude of the decline is particularly worrying.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

Read more from Mona Dohle

Close Window
View the Magazine

I also agree to receive editorial emails from InvestmentEurope
I also agree to receive event communications for InvestmentEurope
I also agree to receive other communications emails from InvestmentEurope
I agree to the terms of service *

You need to fill all required fields!