Greek shares set to plunge by 20 percent

Trading has reportedly resumed at the Athens Stock Exchange in Greece, and analysts are predicting a drop of 20 percent in the value of shares on Monday after five weeks of closure.

According to the BBC, the bourse was shut just before the government of Prime Minister Alexis Tsipras imposed capital controls to counter the debt crisis.

Traders said they are expecting to experience sharp losses because of what they termed "pent-up trading and fears about Greece's worsening economy."

The stock exchange reopened at 7.30 a.m. GMT.

Shares in banks are likely to be particularly hard-hit because Greece's financial sector needs to be recapitalised.

 

The local Avgi newspaper has reported that Greece is asking for about 10 billion Euros this month for this purpose.

Banks account for about a fifth of the main Athens index.

Banks in Greece are not expected to report a profit this fiscal, as they are suffering from an increase in bad loans due to the crisis.

Greece has presently struck a bailout deal with its creditors, but political in-fighting in Athens over the conditions attached to the deal, could still result in Tsipras calling for an early election.

The Greek economy has been in recession for six years.