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Source: Russia Today
http://rt.com/business/news/coca-cola-athens-london-532/
While Coca Cola Hellenic Bottling shifting from the
Athens exchange to London will help the company avoid massive losses, the move
could drag the Greek economy deeper into recession, ringing alarm bells for
investors across the world.
“The fact that a very well-known and established
international company is moving away from the Athens Stock Exchange is a
negative situation,” Theodore Krintas, who helps oversee€80mln euro ($104
million) as managing director of Attica Wealth Management in Athens, told
Bloomberg.
“Although the Athens Stock Exchange is considered to be a
developed market, it has become more like developing than developed when you
lose this kind of company,” Krintas added.
Coca-Cola HBC, Greece’s largest company by market value,
said last week it was leaving the Athens stock exchange.The move will eat more
than $8bln off the total value of equities listed in Athens – to about $31bln,
driving the market value below that of the Vietnam; ($35.2bln) , Bloomberg
calculated. Greece’s bourse is already the smallest among 24 developed markets
tracked by Bloomberg.
The world’s second- largest bottler of Coca Cola products
accounts for 23% of the keyASE Index’s weighting,with the company’s departure
adding to the pain the Greek market has already suffered. Its value shrank 86%
since its peak of $273bln fixed in November 2007. The downturn was largely the
result of the skyrocketing borrowing costs of Greece, underpinned by the
bailouts the country has taken up.
The growing budget deficit made the country agree to
accept a 110 billion-euro rescue package in May 2010. Later, in March 2012, the
17 nations that share the single European currency approved the second package
worth €130bln.
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