Banco Comercial Portugues Short Selling Suspended
August 07 2014 - 6:30AM
Dow Jones News
Portugal's market regulator has banned short selling in shares
of Banco Comercial Português SA, as the rescue earlier this week of
a major Portuguese lender continues to reverberate through
markets.
The regulator said late Wednesday that the ban would take effect
on Thursday morning, and will remain in place until 11.59 p.m. The
move follows a 15% drop in BCP's share price on Wednesday. BCP's
shares were down 11% in early morning trading on Thursday.
The ban comes as investors digest a plan unveiled Sunday night
by Portugal's central bank to rescue the country's No. 2 lender,
Banco Espírito Santo SA. The lender will be split up into a "good"
and "bad" bank and injected with billions of euros of state
money.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires