Member access

4-Traders Homepage  >  Shares  >  Italian Stock Exchange  >  UniCredit SpA    UCG   IT0004781412

UNICREDIT SPA (UCG)

80
SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 

Italy's Banks Take Hit on Inconclusive Election Results

02/26/2013 | 04:34am US/Eastern
Recommend:
0

BY Giovanni Legorano

MILAN--Italian banks are taking a huge hit at the outset of Tuesday's trading session in Milan following election results that produced a hung parliament with no clear political majority in the upper house.

Large banks such as UniCredit SpA (>> UniCredit SpA), Intesa Sanpaolo SpA (>> Intesa Sanpaolo SpA) and Banca Monte dei Paschi di siena SpA (>> Banca Monte dei Paschi di Siena SpA) all failed to open at the beginning of the trading session.

When they did open they were trading down at levels ranging from -7% and -10%.

"Political instability is taking a toll on government bonds, which Italian financial companies are stuffed with, so they are the ones which suffer most," said Vincenzo Longo, a strategist at IG Markets in Milan.

The yield on 10-year Italian bonds surged 46 basis points to 4.82% on Tuesday, according to data from Tradeweb, after the inconclusive set of election results triggered fears of renewed political instability for the country.

With the counting of votes ending in the early hours of Tuesday, the left-wing coalition led by the Democratic Party's Pier Luigi Bersani gained a razor-thin victory in the lower house of parliament over the center-right coalition headed by Silvio Berlusconi. By leading the vote count in the lower house, the Democratic Party automatically gets the majority of seats and, therefore, is likely to receive the mandate to form a government.

However, in the Senate, although the center-left is the biggest single party after the vote, it is well short of an overall majority. Italy's parliament is made up of the Chamber of Deputies and Senate, both with equal powers.

Assicurazioni Generali SpA (>> Assicurazioni Generali SpA), Italy's largest insurer by assets which has a large government bond portfolio, was also suffering in Tuesday's trading session.

At 0901 GMT Generali was down 5.84%, UniCredit 7.8%, Monte dei Paschi 7.3% and Intesa 8.1%. Milan's FTSE MIB was down 4.1%.

Write to Giovanni Legorano at giovanni.legorano@dowjones.com

Recommend :
0
React to this article
Latest news on UNICREDIT SPA
1d agoDJBlackRock Reduces Stake in Italian Bank Monte dei Paschi
1d ago UNICREDIT : Alvarez & Marsal, Intesa SanPaolo, KKR and UniCredit working togethe..
2d ago Intesa, UniCredit in deal with KKR to jointly manage bad loans
2d agoDJCorrection to Intesa Sanpaolo, UniCredit Bad Loan Restructuring Story
2d ago INTESA SANPAOLO : Unicredit reach deal to restructure loans - update
2d agoDJItaly's two Largest Banks to Unload Bad Loans
2d agoDJIntesa Sanpaolo, UniCredit, KKR, Sign MoU to Unload Bad Loans
3d ago Italy's UniCredit, Intesa to set up bad loans vehicle with KKR - FT
6d ago Monte Paschi approves plan to increase cash call to 5 billion euros
7d ago UNICREDIT : Ordinary and Extraordinary Shareholders' Meeting on May 13, 2014
Advertisement
Chart
Duration : Period :
UniCredit SpA Technical Analysis Chart | UCG | IT0004781412 | 4-Traders
Income Statement Evolution
UniCredit SpA : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF