The stock and bond markets are moving in the maelstrom of political uncertainty. At the same time, the concern about political developments seems to touch the banking sector.
As source state, there has not been a wave of fleeing deposits recorded yet, but many bank branches noted mobility on the part of their clients who asked about the maturities of their timed deposits, and asked to be informed on specific products. They also seem to have asked the banks to not renew the deposit without prior notification towards the client.
Bank managers said that they cannot speak of fleeing deposits but from the noted mobility in branches it is obvious that “depositors’ engines are warming up, getting ready”.
A similar climate of concern has been recorded on foreign bank desks and investment groups that deal with Greece. Specifically, the greek desks were inundated by questions of foreign institutions who sought to learn about the precise way that a President is elected.
Since the last days have seen a mini rally in the stock market, the stocks in the ASE were overly pressured. The absence of buyers led to a freefall, leading to the ASE General Index recording losses of up to 11% during the meeting.
The bond market was also characterized by investor distrust and fear of political uncertainty, which was depicted with an increase of approximately 65 basis points for the Greek ten-year bond.
