European bourses started today's session with losses while Credit Suisse shares plunged above 60% after the rushed deal to acquire the bank from UBS did not allay fears for the banking sector. At 10:10 GMT, Paris was down 0.83%, Frankfurt was down 1.06% and London was down 1.01%. The pan-European STOXX 600 index fell 0.8%.
Credit Suisse shares plummeted 62.3% after rival UBS announced it would pay 3 billion Swiss francs for the 167-year-old bank and take on $5.4 billion in losses, in a rescue package orchestrated yesterday by Swiss regulators. UBS shares earlier fell 8.8%.
Fears among investors were also raised by the news that the valuation of Credit Suisse's Additional Tier-1 bonds - or AT1 bonds - with a face value of $17 billion will be reduced to zero, angering some bondholders who felt they would be better protected against shareholders.
The broader European banking sector posted losses as the takeover of Credit Suisse by UBS did not allay investors' fears about the stability of the banking system, despite assurances from European authorities.
At 10:15 GMT, the European banking index was down 5.92%. In Paris, BNP Paribas was down over 8% and Société Générale over 7%. In Frankfurt, Deutsche Bank lost over 6% and Commerzbank almost 5%. In London, Standard Chartered fell over 6%, NatWest over 4% and HSBC 3%.
Athens Stock Exchange: At 1,015.43 points the General Price Index, down 0.47%
Mildly declining stock prices are recorded at the opening of today's trading session, amid negative sentiment in European markets, which are falling despite the acquisition agreement of Credit Suisse by UBS, while Credit Suisse shares are down more than 60%. The General Price Index, at 11:00, is at 1,015.43 points, down 0.47%. The value of transactions amounts to 13.69 million.
The large-cap index declined by 0.75%, while the mid-cap index gained 0.40%.
Among the high-cap stocks, the biggest increases were recorded by ADIME (+1.68%), Jumbo (+0.66%) and Aegean Airlines (+0.42%).
On the contrary, Piraeus (-2.55%), Elvalhalcor (-1.90%), Ethnikis (-1.76%), Mytilineos (-1.75%) and Motor Oil (-1.67%) recorded the biggest decline.
Among the individual indices, the largest increases were recorded for Technology (+0.67%) and Personal Products (+0.34%).
On the contrary, the largest losses were recorded by the Commodities (-1.73%) and Banks (-1.53%) indices.
14 stocks are up, 54 are down and 8 remain stable.
The biggest rise is recorded by Domiki Crete +5,08% and CPI +3,41%, while the biggest fall is recorded by Alpha Urban Real Estate -8,01% and Nakas -6,30%.
