The Greece ETF was up more than 2% Wednesday in above-average trading volume as investors shrugged off a report that Greeks were draining cash from their bank accounts and stockpiling food before a crucial election.
“Bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said some of the money was being used to buy pasta and canned goods in case of shortages, as fears of returning to the drachma were fanned by rumors that a radical leftist leader may win the election,” Reuters reported.
Greek voters are returning to the polls this weekend after the inconclusive election in May. If leftist party Syriza prevails, investors are concerned Greece may end up leaving the euro. [Greece ETF Braces for Election After Spanish Bank Bailout]
Global X FTSE Greece 20 ETF (NYSEArca: GREK) rose 2.2% in afternoon trading Wednesday and is on track for a weekly gain.
There are lingering concerns that Europe’s debt crisis may trigger bank runs and more financial panic.