Greek shares rise, helped by gains in banking stocks

Greek shares rose in early session trading on Monday, helped by a rally in bank stocks which continued to rebound off record lows hit last week after a leftist government opposed to austerity measures won election.

Athens’ benchmark ATG equity index rose 6 percent, while the Athens Stock Exchange FTSE Banks Index rose 13.5 percent.

Shares in Greece’s Eurobank also rose 21 percent after Eurobank said it would name former deputy CEO Nikos Karamouzis as chairman while Fokion Karavias, a general manager, was set to become the new chief executive.

Goldman Sachs wrote in a note on Monday that, so far, worries about a possible Greek exit from the euro zone had not had a major impact on the rest of Europe’s financial markets.

“Our base case remains that, eventually, some accommodation will be found between the new Greek government and Greece’s official creditors,» Goldman analysts wrote.

“The market seems to be taking a view that while the risks of a Greek exit are rising (though not yet to the point where they become the central view), the ability to contain the impact on the rest of the market and avoid systemic spillovers is high,» it added.