In the maelstrom of political uncertainty – after the announcement of the acceleration of the Presidential election – moved today the Athens Stock Exchange (ASE), as concerns regarding the country’s political developments seem to affect Greek banks. The main index lost 132 points on its worst performance since 1987, while all sectors posted losses in excess of 6%. Utilities, banks and industrials were hit the most. The lack of buyers led the Greek General Index to a free fall, as within the day it recorded losses of more than 13%, to finally close at 902 points, with a drop of 12.78%. The National Bank of Greece (NBG) equities recorded loss of 20%, while the Public Power Corporation (PPC), dropped by 23%. At the same time, major losses of over 15% recorded the equities of Piraeus Bank, Alpha Bank and Greek Organization of Football Prognostics (OPAP). According to press leaks by well-informed sources, there has not yet been recorded a “run off” of deposits but in many bank branches, customers asked about the expiration of their time deposits, while requested from the banks to be informed in advance of a possible renewal of their deposit programs. At the same time, bank officials said that they can not yet talk about fleeing deposits but the movement in bank branches reveals that “the depositor engines have begun to heat.” The investors’ lack of trust and fear of political uncertainty was also reflected in the bonds market. The Greek 10-year bond recorded an increase of approximately 65 basis points. It should be noted that after a deceleration of about 7.2% that was recorded – from the 8% level it reached when Greece proclaimed the end of the Memorandum ahead of schedule – the 10-year bond returned to the level of 8% for the first time. Transaction activity came very strong, ending above 217 million euros.
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