Share prices opened sharply higher boosted by Italian general election results which dealt a big blow to the Communist party and bolstered the Christian Democrats and Socialists. The Milan Stock Index was indicated 2.90 pct higher at 0930 GMT as all sectors were stronger. Among stocks posting early gains at mid morning was Fiat ordinary which was indicated 13090 lire against yesterdays closing of 12705. These are provisional not closing prices. Analysts said the results from Sundays and Mondays voting should boost the bourse in the short-term but the markets medium-term prospects remain clouded because of doubt over how long it will take to form a new government. The result is positive in the sense that the Communists suffered a defeat and Italians voted for stability director Paolo Azzoni at Milan investment bank &lt;ABK Spa> tolds. Uncertainty about the election outcome and the possibility of large Communist gains has been weighing on the bourse in the last two weeks brokers said. Final returns show the Socialists led by former Prime Minister Bettino Craxi increasing their vote to 14.3 pct from 11.4 in 1983 while the Communists dropped more than three points to 26.6 pct. Support for the Christian Democrats rose to 34.3 pct from an all-time low of 32.9 in 1983. Carlo De Benedetti chairman of Ing C. Olivetti EC Spa &lt;OLIV.MI> commenting on the results last night on Italian television said I am sure the reaction of international markets will be extremely favourable to the electoral verdict. Broker Francesco Dinepi at Milan investment firm &lt;Sige Spa> said some U.K. Institutional investors had placed buy orders in Milan this morning. In the medium-term the direction of the market depends on the Christian Democrats and Socialists resolving their differences said Dinepi. What Italy wants is another government and quickly added Azzoni.
ITALIAN ELECTION RESULTS BOOST SHARE PRICES