The markets were welcomed with satisfaction his great victory Kyriakos Mitsotakis and New Democracy in Sunday’s elections, as self-reliance is discounted in the second ballots (June 25 most likely), with Greece estimated to “touch” the investment grade.

In particular, stock prices recorded a rally at the opening of today’s (Monday) Stock Exchange session, in the wake of the resounding victory of the ruling party in yesterday’s elections.

The market sees the election result as the best possible scenario, as this drastically reduces political risk, paving the way for one party government in the next elections and for the recovery of the investment grade in the coming months.

The General Price Index at 11:00, stands at 1,200.24 units jumping 6.00%.

The last time the market was at the levels of 1,200 points was in the session of July 28, 2014 (1,213.31 points).

Explosive and the increase in the volume of transactions with the value of transactions amounting to 61,860 million euros.

The large-cap index is up 6.57%, while the mid-cap index is up 3.57%.

They are moving upwards all large cap stocks and the biggest increase was recorded by the shares of Eurobank (+15.72%), Alpha Bank (+12.67%), PPC (+10.43%), Piraeus (+10.30%) and National Bank ( +9.70%).

Profits are recorded by all the individual indices, the biggest increase is noted by the indices of Banks (+12.48%) and Utilities (+7.54%).

92 stocks move upwards, 4 fall and 7 remain stable, indicative of the warm climate that prevails in the stock market.

Reduction in yields and spread of Greek bonds after the victory of ND in the elections

As far as Greek bonds are concerned, they outperformed other Eurozone sovereign bonds today as investors view a departure from the current fiscal discipline after the impressive victory of New Democracy in the elections.

Yields on 10-year government bonds, which move against their prices, fell 11 basis points to 3.948%.

The difference between the yield on Greek and German 10-year bonds (spread) decreased by 4 bp. at 146 m.v.

Analysts said that given the financial support from the EU and today’s low debt servicing costs, the Greek government can significantly reduce the debt-to-GDP ratio, something of critical importance to regain investment grade.

They also noted that Greece has achieved a primary surplus as early as 2022, and the rate hike cycle by the European Central Bank has less impact on the Greek economy.