Greek Stocks Crash To 30-Month Lows As Trading Restrictions Lifted

Since last June, “local investors” have been restricted to only being allowed to buy shares and disallowed from withdrawing cash from accounts. Those restrictions did not stop the stock market from collapsing further and today authorities have decided to lift those capital controls… the result – ASE has plunged below mid-Summer lows to its lowest since June 2009…

authorities have decided to lift those capital controls

Capital controls have been in effect in Greece since late June 2015. With their imposition came a three week bank holiday and the shutdown of the Athens Stock Exchange (ASE) until early August. Since its reopening, the ASE’s general index has yet to reach the 797.52 basis points it stood at on June 26, the last day of operations before capital controls, having plummeted to 608.96, the lowest since August 2012.

The new measure that Tsakalotos reportedly approved, means that Greek investors will now be able to buy financial instruments like bonds and stocks, among others, with “old money,” meaning that they can use funds they have in their Greek bank accounts as well.

But…

HCMC will push to keep short selling of banking stocks and bonds prohibited until December 20.