Greek Banking Shares Rise After National Election

By Pierre Bertrand

Shares in Greek banks rose Monday after the country's general election, in which the governing center-right party performed better than expected but still fell short of 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.

Greece's New Democracy emerged with 41% of the vote while Syriza, the main left-leaning opposition, achieved 20%. The result is shy of the parliamentary majority needed to avoid a second round of voting.

New Democracy, led by Prime Minister Kyriakos Mitsotakis, performed better than opinion polls had expected and the result represents a crushing defeat for Syriza, showing that voters want Mitsotakis to keep steering the country's economy toward recovery.

Unexpectedly, New Democracy increased its share of the vote compared with previous election, a first for an incumbent party in more than four decades, UniCredit analysts said in a research note.

The analysts added that the result will likely prompt Mitsotakis to trigger new elections this summer rather than try to form a ruling coalition.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

May 22, 2023 06:43 ET (10:43 GMT)

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