7/6/2016, 4:52 PM (Source: TeleTrader)
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Banks, Telecom halted at Borsa Italiana

Italian shares tumbled on Wednesday, with the most pressure in the financial sector. Benchmark index FTSE MIB dropped 3% to 15,307.12 points at 4:30 p.m. CET in Milan, slightly above the daily low of 15,293.1 points.

Telecom Italia and Banco Popolare were both halted after bleeding over 10% each during the session, while the value of Banca Monte dei Paschi di Siena was lifted from yesterday's all-time minimum. It added 4.15% to 27.62 euro cents, following a climb to 31 cents earlier in the day. The government said today it doesn't plan to intervene to help the troubled bank, the oldest in the world, after a demand from the European Central Bank for it to strengthen capital. 

Italian financial sector is suffering in the echos of the Brexit vote, as its banks are seen as the weak link within the Eurozone due to a high level of non-performing loans and the associated risk. Morgan Stanley today pointed out to the significant vulnerability of Banco Popolare, too. Its shares dropped 12% to €1.76. Telecom Italia was down 11.36% at 65.75 cents. The slump was initiated after Iliad from France yesterday said it agreed an acquisition allowing it to become the fourth mobile carrier in Italy. Banca Popolare dell'Emilia Romagna held at 9.48% in the red, just above the daily minimum.

Baha Breaking the News (BBN) / IT