E F G EUROBANK ERGAS (OTCMKTS:EGFEY) witnessed a massive sell-off during Thursday’s trading session. The stock collapsed by close to 4 on the back of 1.5 times the average daily volumes. The stock has been trending lower over the last couple of months forming lower tops and lower bottoms indicative of the strong sell side momentum. The momentum oscillators for the stock continue to move lower showing no signs of a reversal. The relative strength index continues to form lower lows pointing towards lack of inherent strength. Traders believe the stock could head to levels of $0.0075 in the near term.
E F G EUROBANK ERGAS (OTCMKTS:EGFEY) made public that it had received a new Greek reform proposal before the given deadline. As per the reports, the announcement was made by Jeroen Dijsselbloem, a group spokesperson.
Insights of The Reform Proposal
The reform proposal was received right before the parliamentary voting took place. There were many reforms proposed to bring back everything to normal, and this reform proposal was considered as one of those that could help the economy bounce back.
EFG Eurobank At Greece Economy’s Core
Whatever happened in Greece over the past six months or so, had left the economy completely distressed and shattered. Many problems related to the capital structure of the country popped up together to add the difficulties for the government. At such a time, EFG Eurobank’s role was considered important, not because of its solid credit structure, but due to international relations.
Several issues regarding its role in this crisis made highlights initially; one of them was Hellenic Financial Stability Fund issue. Reports claim that the Hellenic Financial Stability Fund selected a group of high net worth individuals and made them invest about $2 billion on EFG Eurobank. Its status as one of the top 20 companies registered on the Athens Stock Exchange and good creditworthiness made things easy for Hellenic Financial Stability Fund. Short after the investment was made, regulatory authorities found it suspicious.
It’s what happened after this time that hampered Eurobank’s image in the market drastically. Reports claim that its prices went down as much as 80% after this backlash and made it almost impossible for investors to recover their funds. This situation somehow created an ideal opportunity for real estate investors to buy large properties at ordinary prices
A new leadership team was elected to bring back investors’ trust in the bank and recover the capital. However, the newly elected management has taken several steps to bring everything to normal and hopes that the situation will continue to improve in the future.