Marfin Laiki sells off Bank of Cyprus stake

Bank of Cyprus shares surged sharply higher amid heavy volume Tuesday as word got out that Marfin Popular Bank had completely cleared its holding in Bank of Cyprus.

Until Friday, MPB had reduced its stake in BOC to below 5%. On Monday and Tuesday MPB continued with its rapid sales, thereby exiting its investment in Cyprus’ largest lender, where it had at one point accumulated an 8.15% holding.

Marfin Popular Bank is reported to have booked an additional EUR 50 mln in profit from the transaction considering that by the end of June when the first half results were prepared, BOC shares had closed at EUR 12.40. Marfin initially acquired the 8.15% stake in Bank of Cyprus at EUR 11.24 from Piraeus Bank, but part of its capital appreciation had been booked in the first half results.

Analysts say that MPB’s exit from the stock has cleared the way for Bank of Cyprus shares to move higher and it is now a matter of time when the previous record high of EUR 13.36 seen in mid-July is breached based on the sound and improving fundamentals of the Bank of Cyprus, especially following the bank’s expansion to Romania and Russia.

The fact that foreign institutional investors were the main buyers countering the MPB sales and at higher prices shows the confidence that foreign fund managers have in the future prospects of Bank of Cyprus.