Greek stock market opens with record drop as manufacturing sector falls

Athens Stock Exchange Market reopened on Monday with heavy losses, after five weeks of remaining closed.

The Greek stock market plunged 23%, with banking shares down by as much as 30%, the maximum allowed.

Read more: Greek stock exchange market expected to open 20% lower

The Hellenic manufacturing sector's PMI fell to 30.2 points in July, according to Markit, recording its worst performance since the company started compiling the data in 1999. A reading below 50 signals contraction in activity.

the sheer magnitude of the downturn sends a worrying signal for the health of the economy as a whole

Markit analysts pointed out that the main causes of this contraction were twofold: production requirements diminished as new orders plummeted while manufacturers had difficulty in sourcing materials and semi-completed goods for use in the production process.

“Although manufacturing represents only a small proportion of Greece’s total productive output, the sheer magnitude of the downturn sends a worrying signal for the health of the economy as a whole,“ Phil Smith, Markit economist said.

Also hurting stocks, Greece's economic sentiment index dropped to 81.3 in July from 90.7 month earlier, according to the Institute for Economic and Industrial Research. It marked the lowest reading since October 2012, signalling that concerns for the debt-ridden nation have shown no signs of letting up.

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