LONDON (ICIS)--European chemical stocks rose on Monday, with financial markets remaining steady, after the pro-bailout New Democracy party narrowly won the Greek elections over the weekend, easing concerns that the country will remain in the eurozone in the near-term.
Official results of the Greek election released by the Ministry of Interior showed that the conservative New Democracy party took 29.7% of the votes, with Syriza, which had voted to tearing up an EU-IMF bailout agreement, getting 26.9% and the Pasok Socialists receiving 12.3% of the votes in the 17 June election.
The election in Greece was the second in six weeks after polls on 6 May failed to produce a government with a clear majority.
The vote on Sunday had essentially become a referendum on Greece's membership of the eurozone. There were serious concerns that if Syriza had won, the country may default on its sovereign debts and drop out of the eurozone.
The New Democracy party, which is likely to embrace the tough financial requirements set by its international lenders, will now aim to form a coalition with the left-leaning, pro-austerity Pasok party.
At 09:40 GMT, the UK’s FTSE 100 was down slightly by 0.12%, Germany’s DAX had risen by 0.73%, and the CAC 40 in France was up by 0.10%.
At the same time, the Dow Jones Euro Stoxx Chemicals index was up by 0.97%, as shares in many of Europe’s major chemical companies rose from the previous close.
Chemical producer BASF’s shares had risen by 0.84%, while fellow Germany-based chemical company Bayer’s shares were trading up by 0.99%.
Switzerland-based company Clariant’s shares were trading up by 0.37% from the previous close, France specialty chemical group Arkema's shares were trading 1.70% higher from the previous close, while Norway-based fertilizer producer Yara International's shares were trading up by 0.43% on the previous close.
The majority of international bodies and foreign leaders have welcomed the result of the election. On Sunday, European Commission president Jose Manuel Barroso and European Council president Herman Van Rompuy, in a joint statement, said: “We fully respect their democratic choice. We are hopeful that the election results will allow a government to be formed quickly.
“Today [Sunday], we salute the courage and resilience of the Greek citizens, fully aware of the sacrifices which are demanded from them to redress the Greek economy and build new, sustainable growth for the country,” they added.
On Monday, crude oil prices, which have been under pressure from concerns that a Greek exit would cause further turmoil in the eurozone and worsen its debt crisis, rose by more than $1/bbl in early Asian trade.