A man takes a snapshot of a stock index in the lobby of the Athens Stock Exchange in Athens yesterday. The ATHEX index ended the day down 16.23%, its biggest ever drop, to stand at 668.06 points, its worst decline in nearly 30 years.
AFP/London
Europe’s main stock markets mostly rose yesterday, appearing to shrug off a plunge in Athens as Greek trading resumed after a five-week shutdown.
In the eurozone, the CAC 40 in Paris rose 0.75% to end the day at 5,120.52 points, while Frankfurt’s DAX 30 gained 1.19% to close at 11,443.72 points.
London’s benchmark FTSE 100 index however slipped 0.11% to finish at 6,688.62 points, with its heavyweight oil and mining sectors hit by more disappointing Chinese data, traders said.
In foreign exchange, the euro eased to $1.0967 from $1.0984 late in New York on Friday.
Greece’s stock exchange reopened yesterday with a drop of more than 22% after a five-week shutdown imposed by capital controls in the country’s debt crisis.
The ATHEX index ended the day down 16.23%, its biggest ever drop, to stand at 668.06 points, its worst decline in nearly 30 years.
“The sharp fall in the Athens Stock Exchange on Monday came as little surprise given the huge amount of turmoil in Greece since the market was last open five weeks ago. And it is difficult to make the case for any significant rebound in the months ahead,” said analyst David Rees at research firm Capital Economics.
“Moreover, news that the Greek manufacturing PMI fell to just 30.2 in July, its lowest ever reading—supports our view that the economy will continue to struggle,” Rees added.
Greece’s main banks took a heavy blow yesterday, with National Bank and Piraeus falling to the maximum allowed level of minus 30%.
In London, shares in HSBC gained 0.28% to close at 581.30 pence after the British banking giant announced the sale of its Brazil business. HSBC also posted a drop in quarterly net profits.
More data showing softness in the Chinese economy hit mining shares yesterday.
Glencore led the losers’ board, shedding 3.68% to finish at 200.35 pence, followed closely behind by peer Anglo American—down 3.97% at 779 pence.
“Greece and China are back at the top of the news agenda, with the latter hitting UK mining stocks hard,” said Chris Beauchamp, senior market analyst at IG trading group.
“Having seen a modest bounce last week the mining sector has taken a distinct turn for the worse today, with big names under heavy pressure,” he said.
Asian stock markets mostly fell Monday following the disappointing Chinese manufacturing figures and a drop on Wall Street on Friday.
