Greece debt crisis: Athens stock exchange plummets after five-week shutdown

Greece's stock market plunged nearly 23 per cent at the open on Monday, after a five-week shutdown brought on by fears the country was about to be dumped from the eurozone.

   One fund manager described it as "herd behaviour" and said few people were buying. The main Athens stock index ended down 16.2 per cent after an initial plunge that was larger than any one-day loss ever experienced on the bourse.

   By contrast, the broad European FTSEurofirst 300 index gained slightly. Banking shares, which make up about 20 per cent of the Greece index, were particularly hard hit. National Bank of Greece, the country's largest commercial bank, was down 30 per cent, the daily volatility limit. The overall banking index was also down to its 30 per cent limit.

   Greece's banks have seen deposits severely depleted as Greeks have withdrawn their euros for fear they would be forcibly converted into a new drachma outside the eurozone. The banks have been propped up by emergency money from the European Central Bank.

   "Bank shares look like they have more room to slide on Tuesday before bids emerge," said one fund manager, who declined to be named. "It will take a few days for the market to balance out."

Πηγή: abc.net.au