Marfin Popular Bank lifts CSE higher

…boosts total market cap by EUR 3.8 bln to EUR 16.3 bln

 

Marfin Popular Bank Pcl (CPB) lifted the Cyprus Stock Exchange by a whopping 3.5% in mid-day Friday trading and boosted the total market capitalization of the Exchange by a whopping EUR 3.8 bln in one day, following the debut of its shares, which were matched by an increase in the price.

MPB lifted the total number of its shares listed on the CSE and made its debut Friday January 5, 2007 on the Athens Stock Exchange with the listing of a total of 772.180.348 shares.

As expected, there was no dilution in shareholder interests as a result of the addition of the new shares that were issued to finance the takeover of Marfin Financial Group and Egnatia Bank as well as the minority shares of Laiki Hellas.

Starting from a price of EUR 7.50, the Marfin Popular Bank shares surged to EUR 8.10 in early Friday trading, but then settled at EUR 7.95 by 1.00pm on the CSE. In the process, Marfin Popular Bank lifted the GENX up by 3.4% to 4103 points and boosted the total market cap of the CSE by EUR 3.8 bln to EUR 16.3 bln from EUR 12.5 bln a day earlier.

The total market cap of Marfin Popular Bank is now EUR 6.1 bln, the largest on the CSE ahead of Bank of Cyprus at EUR 5.9 bln and the fifth largest among Greek and Cypriot banks.

Bank of Cyprus was also well bid by mid-day on the CSE at EUR 10.65 with market participants ignoring remarks made by Piraeus Vice-Chairman to Bloomberg stating that very soon Piraeus will decide on its 8.15% stake held in Bank of Cyprus.

“We shall either come back with a new improved bid proposal, or decide to sell and exit out of this investment,” is how the Piraeus Vice-Chairman is reported to have told Bloomberg. The statement was in line with earlier comments made by the bank and did not come as a surprise to Cypriot market participants as it is obvious that the Greek bank has indeed only two options left.

Two weeks ago, the Bank of Cyprus Board rejected a bid by Piraeus offering EUR 2 cash and 0.36 of its shares for every BOCY shares.