The Greek stock market closed with heavy losses which exceed the 6.16%. The General Index also closed well below the “psychological” and technical level of 1,000 units at 948.21 points, noting a 5.7% decrease.
The cause of the above results is the negative climate which has formed abroad, due to political developments in our country.
Investors primarily concern which makes them worry about taking risks is the political uncertainty of Greece, particularly in view of the election of the President of the Republic, following the latest polls giving SYRIZA 6.5% ahead of New Democracy.
Foreign investors avoid political risk and coming out of the market since they believe that if they stay, their loses will be grater.
Even the new report of Goldman Sachs, which supports that Greek banks will need only 1 billion Euro for their capital need, is not enough to reverse the general negativity.
At the same time all European markets hit “red, since ZEW index of economic sentiment in Germany disappointed investors and analysts, with its fall to a low of two years, that and increased fears about the growth path of the largest economy in Eurozone.
Finally, according to Wall Street Journal, six months after the well impressive comeback of Greece to the international bond markets, investors think again, as the 10-year yield exceeded even the 7%.