Greek banks losing half in value send stocks down for third day

Greek banks extended a rout that has wiped out more than half their value this week, sending the nation’s stocks lower for a third day.

Piraeus Bank SA and Alpha Bank AE plunged at least 29 percent, while Eurobank Ergasias SA plummeted 15 percent. National Bank of Greece SA climbed 2.3 percent, rebounding after a 50 percent tumble in two days. While about half of the 60 stocks listed on the benchmark ASE Index climbed, the lenders’ losses dragged the gauge lower.

The ASE fell 1.4 percent to 651.02 at 10:43 a.m. in Athens, after closing at its lowest level since September 2012 on Tuesday. The index tumbled the most since at least 1987 on Monday, when the exchange reopened after a five-week shutdown. An index of Greek banks has fallen to its lowest level since at least 1995.

Trades have been hampered because of emergency curbs put in place amid capital controls. A stock’s trading will be halted if it rises or falls by as much as 7 percent in 10 minutes, while daily moves are limited to 30 percent. Would-be buyers have to raise money from places other than their bank accounts.

More than 131 million ASE shares changed hands on Tuesday, or about four times Monday’s trading volume. The exchange’s first day of trading since June 29 saw the least volume since November.

Greek stocks have given up more than 88 percent of their value since 2007.

[Bloomberg]