Athens, Greece • Greece suffered its worst stock market bloodbath in decades Monday when it opened after a forced five-week closure, and new data showed a dismal outlook for the bailout-dependent country's shrinking economy.
The main stock index shed more than 22 percent just minutes into the opening, as investors got their first opportunity since late June to react to the latest twists in the country's nearly six-year economic drama.
The index closed 16.2 percent lower, with bank shares hitting or nearing the daily trading limit of a 30 percent loss. Collectively, Greek-listed companies lost about a sixth of their market value — almost 8 billion euros ($8.7 billion).
"There's a sense of panic," said Evangelos Sioutis, financial analyst and head of equities at Guardian Trust. He noted some traders are selling stock merely to raise cash because there is so little liquidity in the Greek economy. "There are no buyers," he said. "The outlook is not clear."
The last comparable plunge was in 1987, when the main index lost 15 percent.
But markets in the rest of the world were largely unaffected, a sign that investors outside Greece have now largely cut off ties with the country. European shares closed higher.
The Athens stock market and Greek banks were closed June 29 when the government put limits on money withdrawals and transfers to keep a run on the banks from bringing down the financial system. People were panicking over the prospect that the country could fall out of the euro after its talks with international creditors broke down.
The country's radical left-led government has since capitulated to creditors' demands for new austerity and resumed talks on a new bailout — the third since June 2010 — worth 85 billion euros over the next three years. Banks have reopened, however strict limits on cash withdrawals remain.
Greece is in intense negotiations with bailout lenders to negotiate the terms of the new rescue package in the next two weeks. The country needs to get more loans before Aug. 20, when it has to repay more than 3 billion euros to the European Central Bank.
An employee of the Athens Stock Exchange looks at stock prices which are on display on a ticker screen in Athens, Greece, Monday, Aug. 3, 2015. Greece's main stock index plunged over 22 percent as it reopened Monday after a five-week closure, giving investors their first opportunity since June to react to the country's latest economic crisis. (AP Photo/Yorgos Karahalis)
An employee of the Athens' Stock Exchange speaks on the phone in the reception hall in Athens, Greece, Monday, Aug. 3, 2015. Greece's main stock index plunged over 22 percent as it reopened Monday after a five-week closure, giving investors their first opportunity since June to react to the country's latest economic crisis. (AP Photo/Yorgos Karahalis)
A European Union (EU) flag flutters outside the Athens' Stock Exchange in Athens, Greece, Monday, Aug. 3, 2015. Greece's main stock index plunged over 22 percent as it reopened Monday after a five-week closure, giving investors their first opportunity since June to react to the country's latest economic crisis. (AP Photo/Yorgos Karahalis)
An employee of the Athens Stock Exchange looks at stock prices which are on display on a ticker screen in Athens, Greece, Monday, Aug. 3, 2015. Greece's main stock index plunged over 22 percent as it reopened Monday after a five-week closure, giving investors their first opportunity since June to react to the country's latest economic crisis. (AP Photo/Yorgos Karahalis)
Employees of the Athens Stock Exchange talk as they stand behind a ticker screen where stock prices are on display in Athens, Greece, on Monday, Aug. 3, 2015. Greece's main stock index plunged over 22 percent as it reopened Monday after a five-week closure, giving investors their first opportunity since June to react to the country's latest economic crisis. (AP Photo/Yorgos Karahalis)
Romanian Delia Velculescu, right, International Monetary Fund (IMF) mission chief for Greece, arrives at the Labour ministry in Athens, Greece, on Monday, Aug. 3, 2015. Representatives of Greece's troika of creditors visited the ministry on Monday to meet Labour Minister Giorgos Katrougalos as part of the ongoing negotiations for a new rescue package. (AP Photo/Yorgos Karahalis)
Declan Costello, right, European Commission representative, arrives at the Labour ministry in Athens, Greece, on Monday, Aug. 3, 2015. Representatives of Greece's troika of creditors visited the ministry on Monday to meet Labour Minister Giorgos Katrougalos as part of the ongoing negotiations for a new rescue package. (AP Photo/Yorgos Karahalis)
Declan Costello, front, European Commission representative, arrives at the Labour ministry in Athens, Greece, on Monday, Aug. 3, 2015. Representatives of Greece's troika of creditors visited the ministry on Monday to meet Labour Minister Giorgos Katrougalos as part of the ongoing negotiations for a new rescue package. (AP Photo/Yorgos Karahalis)
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