Bank of Cyprus hits all-time record high

Bank of Cyprus shares hit a new all-time record high, pulling the Cyprus Stock Exchange (CSE) Main index to a record following a massive influx of investors after Marfin Popular Bank liquidated all its stake in the Bank, thus removing the concern that at any time it would sell shares and force the price of Bank of Cyprus lower.

Bank of Cyprus shares (BOCY:CSE) closed at a new record of EUR 13.48, taking their year-to-date gains since the start of the year to 30.5% according to Financial Mirror data. In Greece, Bank of Cyprus shares closed at a new record close of EUR 13.58 on 5.6 mln shares volume.

On Tuesday, Marfin Popular Bank sold the remaining Bank of Cyprus shares. This removed a major uncertainty for the stock, since on the one hand investors were afraid of MPB sales and on the other hand, following the exit, Bank of Cyprus shares has again become a takeover target, and thus its 20% cash takeover premium will soon be reflected in prices.

The rally on Bank of Cyprus shares also helped other shares higher.

Hellenic Bank closed at a new fresh high of EUR 5.48, bringing its gains to 65% since the start of the year while Marfin Popular Bank (MPB) closed up at EUR 9.80.

Hellenic Bank was the most active on the CSE on the back of a big block trade made as Athena Investment sold 2.8 mln HB shares at EUR 5.40, of which 2 mln ended up with Constantias & Amochostou Monastry and 842.238 shares with Trimithountas Monastry. The combined Church stake in HB is now seen at 27%. The reason why Athena sold the HB shares is because after it was acquired by HB shares, its holding was considered as own shares and had to be sold according to analysts.

Other stocks that hit all-time closing highs are Cyprus Trading Corp. (CTC) up at EUR 2.34 and Woolworth Cyprus Properties (FWW), up at EUR 1.75 as well as KEO, up at EUR 3.46.