Wednesday, June 1, 2016

BCP. CMVM does not exclude speculation and prohibits short selling – Daily News – Lisbon

Bank lost 10%. Nuno Amado attributed fall off the European index MCSI. In six months, they are less 1.2 billion in Exchange

The Committee on Securities Securities Market (CMVM) prohibited the short sale of BCP shares today. The decision comes after the bank’s shares were down on Wednesday, more than 10%. Short selling – selling short. – Is a practice that allows the market to bet on falling stock

Carlos Tavares, President of the CMVM, justified the ban on the size of the bank’s losses in one day, as a top break of 10% gives supervisors “the power to temporarily restrict short selling of financial instruments”. BCP lost 10.78%.

Despite the drop size, and according to monitor data, BCP currently has 4.48% of its assets in short positions, the lowest value since February . Still, the CMVM states that the “fluctuation of the stock price in question can not exclude the occurrence of a speculative phenomenon with a negative impact.” The bonds sank bank for just over two cents per share, the lowest value since 2012.

The bank chaired by Nuno Amado, for his part, justified the fall of the shares with the news about the departure of European index MSCI Global Standard, which in practice means that the bank joined the European index of small caps.

“the share price of the descent will be largely related to the correction technical result of the adjustment of portfolios held by the designated index trackers, which began to replicate the new composition of the MSCI Global Standard indexes, in its six-monthly review, “said an official source from bank statements to DN / Mad Money.

the decision on the withdrawal of the Global MSCI BCP was taken on May 12, but the output only occurred on 31 May. “The performance of the action was similar to what happened with another European bank, as the other 37 titles that left the MSCI indices.”

The bank explains that as “is typical in these events,” was transacted “an unusually high volume of shares – about two billion shares on Monday session, when the daily volume is around 300 million in a normal session.”

BCP loses 1 2 billion

in addition to the output of this index, there are other factors that can justify the fall of the BCP. On the one hand, Goldman Sachs yesterday released a report on vulnerable banks, list which included the BCP. The report was published after the capital increase of Banco Popular, which took the market by surprise. The investment house then decided to draw up a list of banks that may be in the same situation, where several Italian banks.

The market may also have reacted to the news about the BCP interest in the new bank, scenery which reinforced the thesis on capital increase in the financial institution, as there are questions about how the Millennium finance the operation, according to analysts (see opposite).

Since the beginning of the year the Millennium It lost more than EUR 1.2 billion in market capitalization. In January, the bank was worth 2.8 billion and is now worth 1.6 billion, a value that is already lower than the BIS.

Given the low BCP share price, the bank approved already this year, the advance of a merger of shares – reverse stock slip – which will merge 75 actions in one – going to be worth close to three euros per share. The bank awaits the legislative amendment that will implement this merger, which will allow raising the value of each action.

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