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.
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“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.