Greece's NBG leads bank stocks higher on capital boost

Shares in National Bank gained more than 4 percent on Wednesday, leading Greek banks higher, as tighter bond yield spreads and the completion of a big rights issue improved investors' risk appetite.
"There is improved sentiment as regards Greek risk, reflected in the bond market with tighter yield spreads and in the equity market with the oversubscription of NBG's rights offering," said analyst Nick Koskoletos at EFG Eurobank Securities.

At 0818 GMT shares in NBG, Greece's largest lender, were up 3.93 percent at 8.45 euros, with the Athens bourse's banking index .FTATBNK gaining 3.18 percent and outperforming the broader stock market's 1.77 percent rise. NBG's 1.8 billion euro rights issue which ended on Oct 11 was covered 1.83 times, a welcome confidence boost for the banking sector, battered by the country's debt crisis.
"There is a risk-on trade with regards to Greece, NBG stands to benefit given its best-in-class capital position after its rights offering," Koskoletos said.

News source: Reuters link: article