January 30, 2013 / 11:20 AM / 5 years ago

Monte Paschi shares down 6 percent in volatile trade

MILAN (Reuters) - Shares in scandal-hit Italian bank Monte dei Paschi di Siena (BMPS.MI) were briefly suspended from trading for excessive losses on Wednesday after falling more than 5 percent in volatile trade.

By 1112 GMT (6.12 a.m ET), the stock was down 6 percent at 0.252 euros. The stock had reached a one-month low of 0.23 euros on January 25 as a scandal over opaque derivative trades emerged, before staging some gain in the following sessions.

    “I think it’s mostly speculation that drives the share price,” a Milan trader said. “As the rebound is losing steam some investors are focusing on the fact that target prices of most brokerages are below 0.2 euros.”

    Monte Paschi shares opened up around 2 percent.

    The European bank stocks index .SX7P was down 0.2 percent.

    Reporting By Valentina Caiazzo, writing by Danilo Masoni, editing by Antonella Ciancio

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