It has been a bad week all round for shares listed in Greece, particularly banking stocks, but investors betting on a rebound do have an easy way to participate.
On 28 January 2015, the Greek bourse closed down 9% with the banking index falling as much as 25%. This was on the back of political upheaval which saw the radical Syriza party voted into power. Syriza has threatened to extract Greece from the Euro region and move away from anti-austerity measures imposed on the region.
There has been a flight of capital from the country with much of the banking sector facing a liquidity crisis.
The bourse has lost 13% year to date and it doesn’t appear that the pain is over unless political players can dispel fears around the so-called “Grexit” [Greek exit from the Euro region].
Contrarian investors may however see this as an opportunity.
As Moneyweb has previously highlighted, there are ways to trade the Greek market through the Global X FTSE Greece 20 Exchange Traded Fund. This fund tracks the performance of the FTSE/ATHEX Custom Capped Index, which includes the 20 largest companies listed on the Athens Stock Exchange. The ETF can be traded through the Standard Bank WebTrader platform.
While the recent sell-off in the Greek market may be offering a long-term buying opportunity, some analysts are warning that Greece may be the first in a series of disruptive moves in the EU which could see weaker players other such as Spain and Italy reviewing both their austerity commitments and their political role in the region. Spain in particular is facing a populist movement for the Catalan region to become independent. This could significantly upset the tax base in the region and create further unrest in the broader region.
For now investors may want to tread carefully.
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