Ruble, Stocks Jump on Greek Poll Outcome

The Russian ruble and stocks have jumped on the MICEX-RTS in early Monday trade on news that a pro-eurozone Greek party was leading in the country’s parliamentary polls.

As of 11:02 a.m. Moscow time (07:02 GMT), the ruble had gained 34 kopecks against the dollar to 32.17 and risen 21 kopecks against the euro to 40.84. The Russian currency had also gained against dollar/euro bi-currency basket by 28 kopecks to 36.06.

The ruble-denominated MICEX stock index was up 0.79 percent to 1,386.13 points and the dollar-denominated RTS was up 1.48 percent at 1,357.23.

A Greek interior ministry projection showed that the two largest pro-bailout parties in Greece, New Democracy and Pasok, had won enough seats to forge a parliamentary majority, pointing to a result which could keep the debt-laden country in the eurozone.

The projection showed the conservative New Democracy party taking 29.5 percent of the vote, with the radical leftist anti-bailout SYRIZA bloc just behind on 27.1. The PASOK Socialists were seen on 12.3 percent of the vote.

That pointed to a buoyant start to the trading week on the Russian market according to Alor Group Head of Analysis, Natalia Lesina.

“Growth will be driven by the results of parliamentary elections in Greece where New Democracy party won the largest number of seats. The coalition Pasok party came third. These two parties in aggregate hold more than a half of seats in parliament, allowing them without any difficulty to form a coalition government and make Greece continue to comply with the earlier agreed (austerity) policies,” she said.

The Greek poll was closely watched around the world amid fears that a Greek exit from the euro area could rock the global economy and undermine the eurozone banking system.


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