Data provided by McGregor BFA
All data is delayed
Loading...
See More

Portugal downgrade hits banks

Jul 06 2011 11:49 Reuters

Related Articles

SA banking confidence soars

Stanbic ventures into Islamic banking

Mercantile jumps 20% on Bidvest offer

Abil plans pref share offering

Basel rules may squeeze SA banks

RMB boosts project finance in Africa

 
Madrid - Banks in peripheral eurozone countries fell sharply on Wednesday on fears that the region’s debt crisis could spread, after rating agency Moody’s downgraded Portugal’s credit standing to “junk” and said Lisbon may need a second bailout.

Portugal’s Millennium bcp shed 5.3% and Banco BPI dropped 4.1%, while Spanish banks, which have significant exposure to Portugal, also came under heavy selling pressure, down 2.3%.

“Moody’s lowering its rating on Portugal is punishing Spanish banks. They have a certain exposure to Portugal, above all more than other European countries, and that harms them,” a Madrid-based trader said.

Spanish banks’ exposure to Portugal stood at $84.6bn at end-December, according to Bank for International Settlement data, more than twice the exposure of German and French banks.

Banco Santander, Spain’s biggest bank, lost 2.2% and BBVA dropped 2.3%. In Italy, UniCredit shed 5.2%, Intesa Sanpaolo fell 4.4% and Banco Popolare eased 4.5%.

The Thomson Reuters Peripheral Eurozone Bank index fell 3.8%, underperforming a 1.9% drop in the STOXX Europe 600 banking index.

The cost of insuring bank debt against default also rose, with the iTraxx Senior Financials index up by 7 basis points to 167 bps.
madrid  |  banking industry
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

ANCYL: Not voting would be blasphemy

Not voting in the forthcoming elections would be blasphemy, the ANCYL says in a statement commemorating the 50th anniversary of struggle icon Nelson Mandela's Rivonia trial speech.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...