ATHENS: The Athens Stock Exchange will plunge by as much as 20% on Monday when trading resumes after a five-week closure, according to traders’ predictions.
The stock market was closed to prevent a mass selloff just before the Greek government imposed capital controls at the height of the debt crisis. Brokers in Athens said they expect significant losses as a result of pent-up trading and uncertainty over Greece’s worsening economy.
Shares in banks are likely to be particularly hard-hit as Greece’s financial sector needs to be recapitalised, with the government of Prime Minister Alexis Tsipras asking for around 10-billion euros in bailout funds in August for bank recapitalisation. Banks account for a fifth of the main Athens index and National Bank of Greece’s US-listed stock has fallen about 20% during the closure of the Athens exchange.
