The Athens Stock Exchange welcomed the election results with a strong rally to new nine-year highs and a surge in turnover, with banks and PPC leading the market with double-digit percentage gains. Buyers were quick to position themselves, appreciating the investment-grade recovery and subsequent AX refresh. in the developed markets category due to high expectations that a second election will lead to the election of a strong independent government that will continue reforms. The rally also extended to Greek bonds, with 10-year yields falling to a six-month low of 3.86%.

According to Depolas Investment Services, the clear mandate given to Nea Dimokratia to continue its work is having a beneficial effect on the economy and A.A. “Of course, we are also waiting for the results of the second election, but the market has the necessary capital to move higher in the next sessions and continue to outperform the market.”

The overall index closed up 6.09% to 1201.32 points, with turnover reaching 362.67 million euros. The Large Cap Index closed up 6.95% to 2,959,462 points, the Mid Cap Index closed up 3.85% to 1,710.93 points, while the Banking Index gained 12.47% to 991.41 item.

Of all the blue chips, only Coca-Cola recorded losses (-0.89%), while KPP stood out +15.93%, National Bank +15.3%, Alfa-Bank +14.17% and Piraeus Bank +13 ,5%. They are followed by Eurobank and Mytilineos with growth of 8.5% and 7.74% respectively, Lamda with growth of 6.88% and HELLENiQ ENERGY, EYDAP and ELVALHalcor with growth of more than 5%. Motor Oil, Jumbo, PPA and Quest recorded gains of over 4%.

The yield on 10-year government bonds fell to 3.86%, a six-month low.

Domestic analysts presented their investment proposals after the voting results, all stating the positive outlook for the Greek market.

Eurobank Equities advises investors to increase their holdings in Greek equities, given that banks and PPC are expected to be among the main beneficiaries of ND’s resounding victory. Thus, the brokerage added PPC (replacing OTE) and Piraeus Bank to its portfolio of top stocks to reflect a clear path towards a revaluation of Greek stocks. This portfolio also includes OPAP, Jumbo and Mytilineos.

And Axia believes the Greek stock market will strengthen given the expectations the results create for the economy to continue to improve. He believes that: 1) PPC, HELLENiQ ENERGY and the National Bank will benefit from political clarity, 2) construction/infrastructure companies and EYDAP will benefit from smooth tendering and regulatory processes, and 3) other systemic banks, highly liquid shares (OTE, Mytilineos, Jumbo and Motor Oil) and HEXA will also be highlighted.

For its part, Optima Bank is also identifying stocks and industries that will benefit the most from the election results. He believes the stocks most affected by the election results are banks, HEXA, PPC and software companies.

He lists energy and oil companies (Mytilineos, Motor Oil, HELLENiQ ENERGY, TERNA Energy) as well as the construction sector (GEK TERNA, INTRAKAT, Ellactor) in moderately exposed stocks. Limited risk stocks include OTE, Coca-Cola, Jumbo, OPAP and Fourlis, which are supported by a positive macro environment and lower borrowing costs.