Falling 10.8% of BCP shares takes CMVM to ban short selling – publico

 
         

                 

                         
                     

                 

 
 

The sharp drop of BCP shares in the session on Wednesday, which resulted in a loss of 10.78% in the bag closure, led the Commission of Securities Market (CMVM) to prohibit sales discovered the bank bonds throughout the day on Thursday.

the actions of the bank led by Nuno Amado ended the worth 0.0273 euros each. With the retreat of the securities, the market capitalization of the financial institution has shrunk more than EUR 194 million, placing the evaluation of the BCP in 1.6118 billion, 68 million less than the amount of BPI in exchange.

the move came one day loss to almost all the titles of the PSI-20, the main index of the Lisbon Stock Exchange. In Europe, the session was also negative for the banking sector, with the banking index Stoxx 600 Bank losing 1.74%. The PSI-20, BPI slipped 1.03% and Montepio’s equity fund lost 0.35%.

The BCP shares closed at a value below the three cents (of 0.0306 euros on Tuesday to 0.0273 in the session on Wednesday). And the fact that they have retreated more than 10% forced a capital market regulator reaction in relation to short sales.

short selling , as they are known in the financial markets are transactions in which the seller alienates an active short (by way of a loan that gives you the future ownership of the financial instrument), the expectation that the price down, so you can buy back later at a lower value.

The ban imposed by the CMVM is temporary and is valid from 0h00 to 23h59 on Thursday. To decide curb short sales, the regulator took into account that the “fluctuation of the price of the shares in question can not exclude the occurrence of a speculative phenomenon with a negative impact.”

The descent of the securities took place on same day it learned that the BCP appears mentioned in a list drawn up by Goldman Sachs in relation to European banks that these analysts consider more “vulnerable”. In exchange, the banking sector has volatile state since the beginning of the year and investor sentiment has cooled after being announced capital increases in the banking sector in Spain and Italy (the Spanish Popular Bank, present in the Portuguese market, and the Italian regional Veneto Banking).

in the Portuguese market, the PSI-20 ended the session to fall 2.17%, with 17 of the 18 companies currently listed in the index lost value compared to Tuesday. The exception was Pharol, which rose 2.14%.

The devaluation of the Portuguese market was the most significant among the main European markets, followed by the Spanish and Italian counterparts. In the Madrid stock exchange, the IBEX 35 fell 1.3% and in Milan the FTSE MIB was down from 1.19%. With more contained losses closed the markets of London (-0.62%), Paris (-0.67%), Frankfurt (-0.57%), Brussels (0.28%) and Amsterdam (0.24%) .