Greek stocks soar on pro-bailout party's poll gain

Source: AP-Excite

ATHENS, Greece (AP) - Greek stock markets rebounded strongly on Monday from a 22-year low on hopes a pro-bailout party will win crucial national elections next month, which would avoid a catastrophic rift with international creditors and keep the struggling country within the euro currency union.

The main stock index in Athens soared to close up 6.9 percent, with the battered bank sector chalking up solid gains.

Four polls published Sunday reversed previous trends to indicate that conservative New Democracy could come first in the June 17 vote, slightly ahead of the anti-austerity radical left Syriza party. Although the conservatives would still fall short of a governing majority, the surveys suggested they could form a coalition government with socialist PASOK, which have also pledged to stick to Greece's austerity commitments.

Banks also received a boost Monday: The country's four largest lenders received promised support of (EURO)18 billion ($22.62 billion) to compensate for losses suffered in a massive debt restructuring deal earlier this year. The announcement was made by Greece's Financial Stability Fund after the Athens bourse closed.

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A woman walks past displays at the Stock Exchange in Athens on Friday, May 25, 2012. Uncertainty over Greece's future in the eurozone has hammered markets ahead of June 17 general elections in the crisis-hit country. Shares on the Athens Stock Exchange hit a new 22-year low Thursday, closing down 4.53 percent despite gains made elsewhere in Europe. (AP Photo/Thanassis Stavrakis)