Greek markets and country-specific exchange traded funds (ETFs) surged Monday after Athens assuaged investors’ fears by laying the groundwork for an agreement on bailout loans and debt relief.
The Global X MSCI Greece ETF (NYSEArca: GREK) gained 4.1% Monday on two times its average daily volume. GREK has increased 40.9% over the past three months and was up 9.1% year-to-date.
The Athens’ benchmark ATG equity index rose 1.2% after Greek lawmakers approved tax hikes and a new privatization fund on Sunday and freed up the sale of non-performing loans in exchange for bailout loans and debt relief, reports Sudip Kar-Gupta for Reuters.
“The unlocking of more emergency loans for Greece has given some reassurance to investors concerning the country,” Naeem Aslam, chief market analyst at TF Global Markets UK Ltd., told Reuters.[related_stories]
Moreover, Greek government borrowing costs dipped to a six-month low of 7.34%, alleviating some of the burdens on loans. Greek yields have been elevated on fears of a financial debt crisis, which contributed to the high borrowing costs that threatened to throw the country’s finances into disarray.