With an explosion of prices and transactions the stock market welcomed the resounding victory of the ruling party in yesterday’s elections.

The market sees the election result as the best possible scenario, an outcome that reduces political risk, paving the way for an independent government in the next election and for the recovery of the investment grade in the coming months.

At the center of interest were banking shares and the PPC share, leading the market above 1,200 units, for the first time since July 2014.

The General Price Index closed at 1,201.32 points, marking explosive rise of 6.09%.

It is the highest close since the July 28, 2014 session (1,213.31 points).

Intra-sessionally it recorded a higher price at 1,217.04 units (+7.69%).

The increase in the volume of transactions with the value of transactions was also explosive amounts to 360.22 million euros, while 102,165,926 shares were traded.

The large-cap index rose 6.95%, while the mid-cap index gained 3.85%.

Of the high capitalization shares, the biggest increase was recorded by the shares of PPC (+15.93%), Ethniki (+15.30%), Piraeus (+13.50%), Alpha Bank (+14, 17%) and Eurobank (+8.50%).

On the contrary, only the share of Coca Cola HBC (-0.89%) recorded a decline.

Of the individual indices, the Banks (+12.47%) and Utilities (+10.62%) indices showed the biggest increase, while the Food (-0.86%) and Health indices recorded losses (-0.28%).

The largest volume of transactions was presented by Alpha Bank and Piraeus, trading 31,183,720 and 24,636,066 shares, respectively.

The highest value of transactions was recorded by Piraeus with 66.10 million euros and National with 61.24 million euros.

105 stocks moved up, 17 fell and 8 remained stable.

The stocks in the large cap index closed as follows:

TITAN: 16.4200 +2.63%

ALPHA BANK:1.3700 +14.17%

AEGEAN AIRLINES: 8.2000 +2.63%

AUTOHELLAS:14.1400 +2.46%

VIOHALCO: 5.0400 +2.44%

GEK TERNA: 12.4000 +3.68%

PPC: 9.3900 +15.93%

COCA COLA HBC:28.9300 -0.89%

ELLAKTOR: 2.1300 +2.40%

ELPE: 7.7000 +5.77%

ELVALHALCOR: 1.7680 +5.25%

NATIONAL: 6.1800 +15.30%

EYDAP: 64700 +5.03%

EUROBANK:1.5700 +8.50%

STOCK QUEST: 5.1200 +4.49%

LAMDA DEVELOPMENT: 5,900 +6.88%

MOTOR OIL: 22.2600 +4.12%

JUMBO: 23,000 +4.55%

MYTILINEOS: 29.5000 +7.74%

PPA: 19.7000 +4.01%

OPAP:16.2800 +2.26%

OTE: 14.1200 +1.95%

PIRAEUS: 2.6900 +13.50%

SARANTIS: 7.3400 +1.66%

TERNA ENERGY: 19.5000 +2.85%

Stock market estimates

Eurobank Equities notes that with the obstacle of the election cycle having been overcome, a significant revaluation of Greek assets is expected in the coming weeks, as investors will position themselves for the impressive story of Greece in the coming years, and the powerful weapons of the Greek economy, such as the increase in GDP by 2-3%, the attractive features of public debt and therefore bonds, and the cheap valuations of Greek stocks.

Based on the result of the first round, in the second round the ND is expected to end up with more than 170 seats, thus achieving a comfortable absolute majority.

Therefore, Eurobank Equities notes that from a market perspective, this is the best-case scenario that ensures policy continuity, reform implementation and fiscal prudence, while leaving room for the country to upgrade to investment grade earlier than the market expects (the next catalyst is the rating by Fitch on June 9).

Optima Bank notes that in the light of the elections and the resounding victory of the ruling party, which paves the way for the formation of a government in the repeat elections, an acceleration of pro-market reforms is expected in the second New Democracy administration, with the aim of ensuring: a) the positive GDP growth trajectory, b) the further de-escalation of the public debt in relative terms and c) the recovery of the investment grade, possibly in the second half of 2023.

Axia stresses that political risk goes out of context for Greece.

The above should lead to the very positive reaction of the Greek stock market based on expectations for continued structural reforms and policies from a market-friendly government, combined with strong economic prospects and relatively undemanding valuations.

According to Axia the political risk in Greece is very low (lower than most countries worldwide). But the important thing is that the country will continue its reforms, a path that has already allowed Greece to increase competitiveness and claim economic growth at rates well above the Eurozone average.