Cyprus Stock Exchange Falls 5.7% on US Downgrade
The Cyprus Stock Exchange's General Index has fallen by 5.76 percent in the wake of Standard and Poor's downgrade of the US' sovereign rating, which has had a negative impact on international markets.
Banks were particularly hard-hit, with Bank of Cyprus falling by 5.38 percent and Cyprus Popular Bank falling by 7.32 percent in intra-day trading. Hellenic Bank fell by 6.38 percent.
Internationally, Athens Stock Exchange shares dropped by 4.8 percent, the FTSE 100 index, France's CAC-40 and Germany's DAX were also in the red.
A trader at Global Capital Securities and Financial Services said that the downtrend will persist in the coming days. In order for the downtrend to change, something positive needs to happen, said Clare Metaxas.
"All the Eurozone has problems, they have to find a solution to this first, they have to sit down and find a way," said Metaxas.
Commenting on the steep fall in bank shares, she said that "everyone is waiting for mergers and acquisitions to consolidate the banking sector."
In related developments, the price of gold hit a historic high at 1,700 USD as investors took refuge in their traditional precious metal safe haven.