Shares in Spain’s nationalised lender Bankia continue their bumpy ride.
The price had fallen so low that on Friday every 100 shares was consolidated into one.
As the repriced stock began trading at the start of the new week it see-sawed – falling by as much as nine percent and then rising by six percent.
The price is expected to plummet in May after the bank completes a recapitalisation with European rescue funds and also converts outstanding hybrid debt into shares, which will hugely dilute the holdings of current shareholders.
“We expect a gradual adjustment to the share price until the day the shares created by the hybrid conversion into equity enter the market (at the end of May),” Societe Generale analysts said in a research note on Monday.
“We recognise that the split and the anomaly in the share price can create confusion.”
Bankia, the biggest failed bank in Spain’s history, put a par value on its shares of a bare minimum of 0.01 euros last month, which has now risen to 1 euro after the consolidation.