Banking Shares in Greece rises

Following Greece’s general election, shares in Greek banks experienced a notable increase. The governing center-right party, New Democracy, performed better than anticipated, although it still fell short of securing a majority. At 0953 GMT, shares of Alpha Services & Holding, Piraeus Financial Holdings, Eurobank Ergasias Services & Holdings, and the National Bank of Greece were all trading more than 14% higher.

New Democracy secured 41% of the vote, while the main left-leaning opposition, Syriza, achieved 20%. However, this outcome did not reach the parliamentary majority required to avoid a second round of voting. Prime Minister Kyriakos Mitsotakis, leading New Democracy, surpassed expectations, resulting in a significant defeat for Syriza.

UniCredit analysts noted the unexpected increase in New Democracy’s share of the vote compared to previous elections, which is the first such occurrence for an incumbent party in over four decades. They further predicted that this result would likely prompt Mitsotakis to call for new elections in the summer, rather than attempting to form a ruling coalition. The upcoming elections would provide an opportunity for New Democracy to consolidate its position and pursue its economic agenda.