Tsipras’s win strengthens fragile Greek political scenario, good for Greek assets

Incumbent Prime Minister, Mr. Alexis Tsipras is on his way to a decisive victory as he was forced into poll after more than a third of its party members revolted against the third bailout package secured two months back.

Mr. Tsipras's Syriza party is on his way to secure more than 35% of the votes, which would give him 144 seats in 300 member parliament, just 6 seats short of an outright majority. Number was 5 less than in 2014, when his party gained 149 seats.

Despite so, this victory much stronger than previous due to following reasons -

• It is now clear to all parties that Greek people are with Mr. Tsipras, in spite of his last minute back down and acceptance of European proposals and austerity for third bailout package.
   
• Syriza party, along with pro-European New Democracy has won almost 65% of the vote, which clearly suggests that Greek people are pro-Euro not anti.
   
• Tsipras has been able to secure 144 seats, in spite of one third of his previous party members revolting against.

However Syriza's alliance with Independent party with just about 10 seats makes the coalition weak, however it is more likely that Mr. Tsipras will be able to finish his four year term.

Greek assets at this point looks pretty attractive, given their low valuation. Greek 10 year yield is now at 8.2%, down from 13.65% in April.

Athens stock exchange is currently trading at 694, up more than 20% since August.