Athens Bourse Extends Hours, Changes Auction Method

Athens Stock Exchange said Friday it will extend its trading hours for 20 minutes and change the calculation of its closing price in the closing auction in an effort to reduce volatility when trading volumes are low. "The extension (of trading hours) is aimed at foreign investors, particularly those in the U.S. and in London," Simos Spyrou, director of strategic planning and corporate communications at the Athens bourse told Dow Jones Newswires. "We want to help them with these new hours."

ATHENS -(Dow Jones)-
Some 65% of the daily volume is from investors outside Greece, according to Spyrou. Foreign investors' participation in the stock market capitalization amounted to 51.5% at the end of June, up from 41.9% in the same period in 2006.

"With the improved algorithm, we made it harder for someone to intervene in an auction and move the share price significantly," he said. "Especially nowadays with lower volumes and fewer shares traded, prices could move significantly."

The end of transactions will be changed to 1720 local time from 1700 and will take effect Sept. 29. The new algorithm for the closing auction will be implemented from Aug. 4, the stock exchange said.

Trading activity on the stock exchange has been low since the beginning of the year, with small transactions leading to excessive price volatility.

Average daily turnover during the first half of 2008 stood at EUR413.8 million, down 6% year-on-year, while the total value of transactions fell 10% - more to do with the fall in share prices than the reduction in the volume of transactions, according to the latest data from the Athens bourse.

The Athens Composite Share Price Index fell 29% between June 30 2007 and June 30 2008. Since the beginning of the year, the index has fallen about 36% as a worldwide downturn in financial markets took its toll on the local bourse.

Stock exchange Web site: http://www.ase.gr

-By Ayse Ferliel, Dow Jones Newswires; +30 210331 0727; ayse.ferliel@ dowjones.com

19.07.2008