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| Greek shares 'set to plunge 20%' as stock exchange reopens | Greek shares 'set to plunge 20%' as stock exchange reopens |
| (about 11 hours later) | |
| The Athens Stock Exchange is set to plunge by as much as 20% on Monday when trading finally resumes after a five-week closure, traders have predicted. | The Athens Stock Exchange is set to plunge by as much as 20% on Monday when trading finally resumes after a five-week closure, traders have predicted. |
| The bourse was shut just before the Greek government imposed capital controls at the height of the debt crisis. | The bourse was shut just before the Greek government imposed capital controls at the height of the debt crisis. |
| Traders said they expect sharp losses as a result of pent-up trading and fears about Greece's worsening economy. | Traders said they expect sharp losses as a result of pent-up trading and fears about Greece's worsening economy. |
| The stock exchange is due to reopen at 07:30 GMT. | |
| Takis Zamanis, chief trader at Beta Securities, is among the pessimists. | Takis Zamanis, chief trader at Beta Securities, is among the pessimists. |
| "The possibility of seeing even a single share rise in tomorrow's session is almost zero," he said. | "The possibility of seeing even a single share rise in tomorrow's session is almost zero," he said. |
| "There is a lot of uncertainty about the government's ability to sign the... bailout on time and for possible snap elections." | "There is a lot of uncertainty about the government's ability to sign the... bailout on time and for possible snap elections." |
| Bank recapitalisation | Bank recapitalisation |
| Shares in banks are likely to be particularly hard-hit because Greece's financial sector needs to be recapitalised. | Shares in banks are likely to be particularly hard-hit because Greece's financial sector needs to be recapitalised. |
| A report in Avgi newspaper, which is close to the government of Prime Minister Alexis Tsipras, suggested Athens was asking for about 10 billion euros (£7bn) this month for bank recapitalisation. | A report in Avgi newspaper, which is close to the government of Prime Minister Alexis Tsipras, suggested Athens was asking for about 10 billion euros (£7bn) this month for bank recapitalisation. |
| Banks account for about a fifth of the main Athens index. National Bank of Greece's US-listed stock has fallen about 20% while the Athens exchange has been closed. | Banks account for about a fifth of the main Athens index. National Bank of Greece's US-listed stock has fallen about 20% while the Athens exchange has been closed. |
| One asset manager at a Greek fund said: "The focus will be in the bank shares - they will suffer more because their investors have to face a dilution from the [expected] recapitalisation of the sector." | One asset manager at a Greek fund said: "The focus will be in the bank shares - they will suffer more because their investors have to face a dilution from the [expected] recapitalisation of the sector." |
| Greek banks will not be make a profit this year and are suffering from an increase in bad loans due to the crisis, the manager said. | Greek banks will not be make a profit this year and are suffering from an increase in bad loans due to the crisis, the manager said. |
| "It would be realistic to expect a decline of about 15-20% at the opening of the market on Monday," he added. | "It would be realistic to expect a decline of about 15-20% at the opening of the market on Monday," he added. |
| Although Greece struck a bailout deal with its creditors last month, political in-fighting in Athens over the conditions could still result in Mr Tsipras calling an early election. | Although Greece struck a bailout deal with its creditors last month, political in-fighting in Athens over the conditions could still result in Mr Tsipras calling an early election. |
| The Greek economy has begun to reverse the gains it was making before Mr Tsipras's Syriza-led coalition took power in January on an anti-austerity platform. | The Greek economy has begun to reverse the gains it was making before Mr Tsipras's Syriza-led coalition took power in January on an anti-austerity platform. |
| The European Commission expects Greece to go back into recession this year, with the economy contracting by between 2% and 4%. | The European Commission expects Greece to go back into recession this year, with the economy contracting by between 2% and 4%. |
| The Greek economy was in recession for six years until 2014. | The Greek economy was in recession for six years until 2014. |