[01] ASE-close

Equity prices remained under strong pressure to end sharply lower for the third consecutive session on the Athens Stock Exchange on Wednesday.

Traders said market sentiment was undermined by news of a more than expected jump in the inflation rate to 4.0 percent in October the previous day.

The general index ended 1.35 percent lower at 3,620.27 points, off the day's lows of 3,589.72 points, with turnover a low 59.16 billion drachmas.

Hellenic Telecoms' share price showed signs of stability following its plunge in the previous four days. Bank of Cyprus showed its share price closing slightly higher on its debut in the market, despite a sharp drop in most other shares in the sector.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 1.46 percent lower at 2,084.49 points, and the FTSE/ASE 40 index eased 0.34 percent to 439.37 points.

The parallel market index for smaller capitalisation stocks ended 0.82 percent lower at 397.18 points.

[02] Greece-economy-measures

The Greek government on Wednesday announced the freezing of state enterprises' bills for the next six months and all ther demands for price increases.

National Economy and Finance Minister, Yiannos Papantoniou, speaking to reporters said the measures were decided to avoid any new pressures on inflation in the coming months.

Papantoniou predicted that the inflation rate in Greece would move within the government's forecasts in the next few months.

Commenting on monetary policy, Papantoniou said that interest rates would fall in the last two months of the year to achieve the short-term interest rates convergence criterion before the country's formal entry in EMU by January 1, 2001.

Referring on EU efforts to reform Europe's social security system to deal with fiscal problems caused by an ageing population in the continent, Papantoniou said that the Greek government has hired a foreign consultant to draft a report on the country's social security system, to be used as a basis for a dialogue on reform with social partners. He pledged that the state would continue subsidising social security funds under a new system.

He said that the euro currency will begin circulating from January 1, 2002, in the country and would co-exist with the drachma for the first two months of the year. After that period the drachma currency would be withdrawed, he said.

[03] Greece-foreign exchange

A strong US dollar parity in international foreign exchange markets on Wednesday, pushing the euro/dollar rate below the 86 cents level, maintained pressure on the drachma.

The Greek currency fell to 397.350 drachmas per dollar at the day's fixing, up from 395.520 the previous day.

The drachma was unchanged against the euro currency at 340.050 drachmas.

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