Greek bank stocks jump 4.8 pct, continue rebound

Greek bank stocks gained 4.8 percent on Monday, leading the Greek equities market higher, as they continued to rebound from oversold levels amid optimism over fiscal consolidation targets, traders said.

"There are positive signs the government is moving in the right direction in terms of the stability plan targets and this has halted the wave of selling. But low volumes still point to cautiousness on the part of investors," said a trader who did not want to be named.

The Athens bourse's banking index <.FTATBNK> was gaining 5.02 percent to 1,553 points at 1209 GMT, outperforming a 4.0 advance in the benchmark index <.ATG>.

Greek banks have shed 44 percent year to date, underperforming the broader market's 32.4 percent decline on worries over rising loan -loss provisions and a weak earnings outlook.

Shares of National Bank <NBGr.AT> were up 5.6 percent percent to 10.24 euros, with Alpha Bank <ACBr.AT> gaining 4.8 percent to 4.82 euros.

"Bank stocks are rebounding from oversold levels, but it's too early to say that the fundamental outlook has changed. They still face a tough second quarter," said analyst Nick Galousis at Kappa Securities.