The Warsaw Stock Exchange’s main WIG20 index gained 3.9 percent to 2,055 points shortly after the start of trading on Monday morning, its best result since early September, the Business Insider website reported.
Earlier in the day, an updated exit poll found that Poland’s ruling conservative Law and Justice (PiS) party had won the country’s parliamentary elections, but would not be able to muster a majority in the new parliament, paving the way for the opposition to take power, Polish state news agency PAP reported.
The Law and Justice party, allied with two smaller groupings in a United Right coalition, came first in Sunday’s election, with 36.6 percent of the vote, but the opposition looked poised to form the new government, according to exit poll projections released on Monday morning.
The liberal opposition Civic Coalition (KO) finished in second place, with 31 percent, and the centre-right opposition Third Way alliance was third with 13.5 percent, according to the updated survey by pollster Ipsos.
The New Left party was fourth on 8.6 percent.
The far-right Confederation group, with 6.4 percent, also crossed the 5-percent voter support threshold that Polish parties need to clear to enter parliament, the updated exit poll indicated.
Poland’s zloty currency increased in value against the dollar and euro after the poll results were released, Business Insider reported.
Kamil Cisowski, an analyst with Xelion Investment House, told reporters that listed stocks were expected to "go up considerably” on Monday, amid the prospect of a victory for the opposition in the parliamentary elections.
Cisowski added that this sentiment was fueled by the prospect of a stable new government formed by the opposition Civic Coalition, Third Way and New Left groups, as well as by “a very weak result" for the far-right Confederation group, Business Insider reported.
Cisowski also said that “the reaction of the zloty has been huge,” adding that the projected election results were seen abroad as “a great pro-European shift” and were expected to boost demand for the Polish currency.
Poland elects new parliament
According to the updated exit poll, Law and Justice secured 198 seats in the Sejm, the lower house of parliament, compared with a combined 248 for the opposition.
The Civic Coalition looked set to have 161 seats in the lower house; the Third Way alliance was seen garnering 57 seats; and the New Left secured 30 seats, according to the survey.
The Confederation was expected to have 14 lawmakers in the 460-seat lower house.
The Non-Partisan Local Government Activists group received 2.4 percent of the vote, according to the late exit poll, and will not be represented in parliament, public broadcaster Polish Radio’s IAR news agency reported.
The polling company said its “late poll” findings combined exit poll data with partial official results and could vary by up to 2 percentage points from the final election returns.
The official results of the vote were expected to be announced by midday on Tuesday.
Voter turnout was a record 72.9 percent, according to the late exit poll.
An initial exit poll released on Sunday evening had pointed to a slightly smaller gap between the governing conservatives and the opposition, putting the Law and Justice party's showing at 200 seats vs. 248 seats for the opposition.
(pm/gs)
Source: Business Insider, Warsaw Stock Exchange