Bank shares crash in Athens stock market

Investors unleash massive sell-off of bank stocks

The Athens stock exchange is under pressure, as the value of bank shares have dropped. Piraeus Bank is plummeting losing 29% and stands at 1.161 Euros, while Eurobank has lost 17.3% and NBG 10.21%. Alpha Bank managed to contain its losses to 4.267%, while the general index tumbled to 655 points, a 3% drop. Investors are shorting on bank shares in fear of the possibility of the Greek banks requesting state support from the public capital fund of 30 billion.
It should be noted that the day after the gradual lifting of Capital Controls, it was announced that Piraeus had a three-month deadline to raise a 500 million euro bond loan – a development that was known beforehand.
Yesterday’s drop in the stock market (1.47%) and pressures on bank shares are mainly attributed to investors that have lost confidence in Greek banks and withdrawing their support.