Stocks lose ground on low turnover

The unexpected move by Italy’s government to slap a windfall tax on local banks and Moody’s downgrading of certain US banks affected European stock markets negatively on Tuesday, leading investors to sell shares and turn to government bonds. Athens followed.

The ASE general index lost 0.72% to close at 1,311.19 points on low turnover of €69.6 million. Blue chips dropped 0.65%, mid-caps lost 1.26% and banks 0.81%.

Aegean Airlines, Viohalco, PPC and Cenergy lost over 2% and Helleniq Energy, Lamda Development and ELVALHalcor over 1%. Construction group Ellaktor outperformed, gaining 2.44%.

Positive developments in the economy are not currently reflected in the ASE because portfolio managers are either on holiday or still liquidating positions, Dimitris Tzanas of Cyclos Securities told Kathimerini.