MADRID, June 12 (Reuters) - Spanish stock market regulator CNMV said on Monday it would ban short sales on trading stocks of Liberbank initially for one month.
The stock regulator said this measure was taken after considering the recent stock performance of Liberbank in the aftermath of Banco Popular’s rescue by the Single Resolution Board.
Liberbank has lost more than 40 percent of its stock value in the last 10 trading session after closing down 17.6 percent on Friday.
The CNMV said that the ban on short sales could be extended or lifted after one month.
Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed, and motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit.
Reporting By Jesús Aguado; edited by Robert Hetz