Stocks register explosive growth in Athens Stock Exchangebut also government bonds, since his clear victory New Republic and the prospect of a stable government after the last elections to assure investors of fiscal discipline, which will bring a long-awaited return to investment grade.

The overall index stands at 1,212.82 points, a jump of 7.11%, with transaction values ​​already reaching 190 million euros. The large-cap index rose 8.22%, while the mid-cap index rose 3.62%.

All large-cap stocks are moving up, with the biggest gains being seen in Etnikov (+17.05%), Alfa Bank (+15.92%), KPP (+15.56%), Evrobank (+14.79%) and Piraeus (+14.79%). 14.35%). Some indices are moving up, and the largest growth is noted by the indices of banks (+15.63%), utilities (+10.89%) and financial services (+6.83%).

Piraeus and Alpha Bank show the highest transaction volume with 11,067,418 and 17,554,401 shares respectively. Piraeus with 29.54 million euros and Alpha Bank with 23.83 million euros have the highest transaction value. 104 stocks are rising, 14 are falling and 12 are stable, indicating a hot climate prevailing in the stock market.

At the same time, the prices of Greek government bonds are also moving up, as investors are positive about the election results. Earlier, Greek 10-year government bond yields fell 13 basis points to 3,893%, while German bond spreads narrowed to 150 basis points for the first time since January 2022.

What analysts say

Analysts at AXIA note that the Greek market continues to trade at favorable multiples relative to other markets, while some stocks are listed that would be more favored by political clarity (PPC, HelleniQ Energy and National Bank). In addition, the continuation of procedures initiated before the elections will benefit companies in the construction and infrastructure sectors, as well as EYDAP.

Eurobank Securities expects a sharp revaluation of Greek assets after, as it points out, the last hurdle, which was the elections, will be overcome. According to stock market analysts, the comfortable independence of the New Democracy after the second election, from the point of view of the markets, is the best possible scenario for policy continuity, reform and financial prudence. At the same time, this leaves room for an upgrade of the country’s credit rating earlier than the market expected, with the next catalyst being the June 9 Fitch review.

In addition, Alevizos Alevizakos, General Manager of Axia Ventures Investment Services Group, estimated that Greek investment will show a big jump with good transaction volumes in the next period. He notes that the election results support Greek assets in both the short and long term.

International analysts reported, according to Reuters, that given financial support from the EU. and today’s low debt-servicing costs, the Greek government can significantly reduce its debt-to-GDP ratio, which is critical to recovering investment grade. They also noted that Greece has already reached a primary surplus in 2022, and the European Central Bank’s rate hike cycle has less of an impact on the Greek economy.

“The election results put Greece firmly on track for an investment grade rating, possibly before the end of the year,” Volfango Piccoli, co-chair of Teneo Intelligence, told Bloomberg. “While investors are largely discounting the value of such an upgrade, it will be an important moment as the stigma that has existed since the end of 2010 will disappear,” he notes.