MADRID | Bankia shares seem to have become a toy amid high volatility on the Madrid stock market index Ibex35. This week so far the entity suffered a -16.08 percent loss of price in two consecutive sessions, after the State fund for banking restructuring FROB announced that stockholders will be partially shouldering, too, the costs of the rescue of the bank with taxpayer money. Banco de Valencia stock fell by -23.8 percent.
Financial analysts in Madrid voiced their concerns about the movements and pointed at the need of an investigation to uncover who is speculating with these shares, a responsibility for the regulator CNMV. Bankia’s price dropped -19.83 percent on Friday August 10 and was again about to be valued at less than one euro per share.
Prior to this week, Bankia had experienced eleven consecutive rises before the FROB notification, and its market value had recovered some €1.1 billion since July 25. Banco de Valencia had more than double its market value. What the FROB said was that, according to the conditions for Spain to receive capital aid, shareholders must participate in covering the costs of restructuring in entities that use public money following the process opened by the Bank of Spain and the European Commission.
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