Greek bank shares continue rally on merger prospects

Greek bank stocks were up sharply on Tuesday, continuing Monday's rally with brokers citing merger talk and low valuations as the main drivers.
"What's driving the rise is the fact that Greek bank stock valuations were quite cheap. The prospect of mergers and acquisitions has sparked the rally which is correcting their undervaluation," said broker Alexander Moraitakis at Nuntius Securities.
The Athens bourse's banking index was up 5.57% at 0817 GMT after a 4.6% advance on Monday, outperforming the broader Greek market which was rising 2.8%.