Bankia plummets after new share valuation

 

Shares in Spain's largest rescued lender Bankia dropped 41.04% to €0.148 shortly after opening on Monday after the country's bank restructuring fund valued them at €0.01 on Friday night.

The shares, which began trading more than an hour after the market opened because demand could not match supply, lost more than 46% at the open. Shares briefly fell by as much as 52% before recovering slightly.

The new valuation was imposed by the EU as Bankia prepares to get a capital injection of €10.7 billion out of European rescue funds shortly after opening on Monday after the country's bank restructuring fund valued them at €0.01 on Friday night.